american opportunity tax credit

[wildn01]

hi, so my wife and I were married last year and we were under 23 but our parents never claimed the American tax credit because her parents made too much and mine didn’t know. 

we are both in school, but have been in college before since high school

she got her bachelors degree in may 2024 but started a secondary program. 

I am continuing and associates degree to transfer for bachelors

do I need to do the AOC or LLC credit as I’m not sure on the specifics

[Hal_Al]

You can both claim the more generous American Opportunity Credit (AOC) for 2024.

Even though she is a grad student, she can still claim it because she had not completed her undergrad work before 2024 and because it had not been claimed before (by either her or her parents).

You can claim the AOC because you have  not yet completed four years of post secondary education (no bachelors degree) and because it has not been claimed before.

You and your parents may want to consider them filing amended returns for past years to claim it, particularly if you will complete you bachelors degree before being able to claim it 4 times yourself. 

[KrisD15]

It sounds like you both could be eligible for either credit. 

You would be eligible for either since

 the credit has not been used four times in your name and not four times for her. 

You are working on your first four years of the degree (Freshman, Sophomore Junior Senior) and she was still working on hers n 2024

The credit would be for each student.

Enter your 1098-T and continue through the interview.

Remember she DID NOT finish her undergrade BEFORE 2024 and ALL her expense count (you don't need to separate Undergrad from Grad expenses) FOR 2024. 

IRS Pub 970

@wildn01