@Hal_Al wrote:
Here's a post from another user who claims you can't do that, but does not cite a reference. https://ttlc.intuit.com/community/after-you-file/discussion/can-i-amend-a-prior-year-to-unclaim-the-...
Here's the problem. The AOC is only available for the first 4 years of eligible post-secondary education.
"Available ONLY if the student had not completed the first 4 years of postsecondary education before 2021 (generally, the freshman through senior years, determined by the eligible educational institution, not including academic credit awarded solely because of the student's performance on proficiency examinations)"
https://www.irs.gov/publications/p970#en_US_2021_publink1000204317
It's also only available for the first 4 years or equivalent (bachelors or equivalent). Meaning, that if you get a bachelors in 3 years, you can only use the AOC for those 3 years and can't use it for a 4th year (either graduate school or a second bachelors). But if you take 5 years to get a bachelors, you can only claim the AOC for the first 4 years.
What you are trying to do is take a child who will take 5 or more years for a bachelors degree, and pick and choose which 4 years to apply to the AOC, instead of applying the first 4 years.
Unfortunately, the term "first 4 years" is baked into the legal statute itself. (see below)
26 USC §25A(b)(2)(C)
Now, I wonder about 2018, when you claimed only $1600 in expenses, did the child attend at least half time? Because if the child did not attend at least half time, then they were never eligible. You can use the AOC for the first 4 years the child is an eligible student, and they must be enrolled at least half time to be considered an eligible student. So if they were never eligible in 2018, you could file the amended return, admit that fact in the explanation section, switch to the Lifetime Learning credit (which does not require half-time enrollment) and pay the difference, and possibly regain a year of eligibility.
But if the child has been eligible 4 times, you can't rearrange the AOC to pick which years to use, according to the law it must be claimed the first 4 eligible years.
https://www.law.cornell.edu/uscode/text/26/25A
(C) Credit allowed only for first 4 years of postsecondary education
The American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution.
