Can I retroactively claim Educational Tax credit on 8863 forms for previous years?

[lexiing]

This was the first year I received a 1098-T form from my university, and I claimed the American Opportunity and Lifetime Learning Tax Credit. However, I've been in school full-time and worked part-time for several years, and I don't think I've claimed it before this year. Can I retroactively fill out 8863 forms for previous years and retroactively receive the Education Tax Credit?

[Texas Roger · Accepted solution]

You can amend a tax return for up to 3 years from the original filing deadline to claim the education credit that you mistakenly did not claim. The American Opportunity Credit can be claimed for up to 4 tax years while you are an undergraduate student working toward a degree in the first 4 academic years. 

You said in your post you claimed the American Opportunity and Lifetime Learning Tax Credit but you can only claim one of the credits in any tax year. 

[SweetieJean]

However, you cannot claim education credits if someone else (such as a parent claimed you as a dependent.

[rajunediath]

Answer to your question is : YES. Now you may ask another question: "how can I claim".  If you know it, it is good. If not, please note that you need to file an amendment return for that particular year (which is called 1040X).  This return you can file within 3 years.  Please note one can not claim the AOC of previous years in the current year tax return.

[nellienel40]

2020 was the first time I use the education tax credit.  I use the 2019 1098T form from my university. But I went to college in 2017 and 2018 and I have those 1098T forms,  may I retro claim the education tax credit for those past years? 

[Hal_Al]

@nellienel40 

You question was answered in the earlier replies in this thread.  You can still file amended returns for both 2017 and 2018. 

You cannot claim  a credit if you were or COULD BE claimed as a dependent by someone else.

The American Opportunity Credit, for your education, can be claimed for up to 4 tax years, including times claimed by anyone claiming you as a dependent.

One other item, not mentioned above: 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

[Baseballman25]

If i entered the wrong amount (i didn’t understand what turbo tax was asking me) and i only got back 716 can and should i amend my American opportunity credit so i can get the full amount I’m supposed to?

[Hal_Al]

@Baseballman25 

Yes, if you are eligible (see above on eligibility) and links below. 

How to amend https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

Info on AOTC

https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

[Uel202]

How do I fill out the 8863 form?

[DoninGA]

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@Uel202  wrote:

How do I fill out the 8863 form?

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To enter, edit or delete Education Expenses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Education
• On Expenses and Scholarships (Form 1098-T), click on the start or update button

Or enter education expenses in the Search box located in the upper right of the program screen. Click on Jump to education expenses

[Mostafa23]

Hello,

I see that you can't claim education credits if you are dependent. My situtaion is a bit uniuqe however, I am a US citizen while my parents are not. My dad pays off my tuition and he doesn't file any taxes in the us because he works overseas. so I was wondering since he cannot claim the education credits. Can I do it on his behalf?

[Hal_Al]

No and yes.  Note that eligibility for the refundable AOC isn't solely tied to dependency.  Eligibility for the non refundable portion is about whether you are claimed as a dependent, not whether you can be claimed. 

You don't qualify for a refundable American opportunity credit (AOC) if 1 (a, b, or c), 2, and 3 below apply to you.

1.	You were:
	a.	Under age 18 at the end of 2024, or
	b.	Age 18 at the end of 2024 and your earned income (defined later) was less than one-half of your support (defined later), or
	c.	Over age 18 and under age 24 at the end of 2024 and a full-time student (defined later) and your earned income (defined later) was less than one-half of your support (defined later).
2.	At least one of your parents was alive at the end of 2024.
3.	You're not filing a joint return for 2024.

Technically there is a provision that allows a student-dependent to claim a federal tuition credit, from a practical matter it seldom works out.  A full time student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support.  It is usually best if the parent claims that credit.  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit.  The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable).