Can i claim for American opportunity tax credit if I didn't claim it in last year?

[61b049671303]

My son is 23 and full time student

[Vanessa A]

If you and your son qualify, and you are claiming him as a dependent, then yes.  It is not something you have to claim every year as some years you may not qualify and each year is independent of the prior year. 

American Opportunity Tax Credit

• Available for the first 4 years of college
• Max amount is $2,500 per student
• Partially refundable credit meaning if your tax liability is $0, 40% (up to $1,000) is refundable

Tax Benefits for Education

[Hal_Al · Accepted solution]

Q. Can I claim for American opportunity tax credit if I didn't claim it in last year?

A. Yes. But, only for 2023 expenses.  You may not "carry over" any unclaimed tuition from 2022 and claim it on your 2023 tax return. 

If you failed to claim a credit, that you were eligible for, on your 2022 return, you can file an amended 2022 return to claim it now. The American Opportunity Credit (AOTC) is 40% refundable, meaning you could get up to $1000, even if you had no tax liability in 2022. 

You are limited to claiming the AOTC four times in each student-dependent's undergrad years. Undergrad degrees usually take five calendar years to complete. So, you may not want to use one of your four times for 2022, if you can get more in another year. The AOTC is worth a maximum of $2500.

[cw47]

IRS Publication 970 indicates that it can be used for graduate school as well (see the Appendix comparison), so it apparently doesn't need to be just for 4 years of undergraduate education. 

It's a little confusing what "Not have finished the first four years of higher education at the beginning of the tax year" means. If I've completed 4 years of undergraduate education, but didn't use the AOTC at the time, then I can use the AOTC for graduate school years? Or can I only use it if undergraduate education took less than 4 years, e.g. I did it in 3 years? Or perhaps they mean it can only be used for 4 years of higher ed at a particular school to which you are applying the credit?

[Hal_Al]

Q. IRS Publication 970 indicates that it can be used for graduate school as well (see the Appendix comparison), so it apparently doesn't need to be just for 4 years of undergraduate education. Is that correct.

A. Yes, but only in a specific situation. The grad expenses must occur in the same calendar year as your last undergrad classes. If you finished your undergrad degree, in the spring, and go to grad school, in the fall, you may count both the grad and undergrad expenses for the AOTC.  But, you cannot claim the AOTC the following year of grad school (because you had completed 4 years of post secondary education before January 1st.).