Can I claim education tax credit if tuition was paid with loans and grants, and I have been in college more than four years?

[katwerner89]

Background:

I changed majors after 2.5 years to a completely different major that has taken another four years to complete, I graduated in 2016.
I did not receive a 1098-T.
I am not sure if I've claimed any education credits. On line 31 of my 2015 form 8863 says 463 but I am not sure what that is supposed to mean.

[MichaelDC · Accepted solution]

Yes. You can claim an education tax credit for this year.

Your 2015 tax return shows that you claimed the Lifetime Learning Credit giving you a credit of $463 on your $2,315 of qualified education expense paid in the year.

The Lifetime Learning Credit is the correct credit for you to claim since you or your parents probably claimed the American Opportunity Credit for four years already (the maximum times you can claim AOC).

You're entitled to claim the Lifetime Learning Credit for as long as you take classes (2016 and all future years) if all of the following requirements are met:

• You (or your dependent or a third party) paid qualified education expenses for higher education.
• You paid the education expenses for an eligible student.
• The eligible student is you, your spouse, or a dependent you claim an exemption for on your tax return.
• Your modified adjusted gross income is less than $65,000($131,000 if you are married filing jointly).
• The credit is reduced between $55,000 and $65,000 ($111,000 and $131,000 MFJ).

To qualify, students must attend an eligible institution. Almost all accredited public, nonprofit and for-profit postsecondary schools (including many trade schools) fit this description. To make sure a school is eligible, go to fafsa.gov and verify that it has a Federal School Code.