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Can I still claim AOTC? I have used AOTC for 2 years. This year it is saying I am ineligible. Both years I claimed the credit, I received scholarships > tuition.

I know I am eligible to claim AOTC since it is available for 4 years. I received scholarships greater than my tuition cost last year but still was able to claim it. My CPA filed for me and used the 8863 form and line 27 they entered 840. I'm not sure where they got that number, my 1098T shows tuition and scholarships.
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1 Reply
MaryK4
Employee Tax Expert

Can I still claim AOTC? I have used AOTC for 2 years. This year it is saying I am ineligible. Both years I claimed the credit, I received scholarships > tuition.

Yes, you can claim the AOTC for four years if you otherwise qualify.  You must use qualified expenses you paid for the credit.  TurboTax starts with the information that you entered from the 1098-T and will subtract the Scholarship from the Tuition to get the base amount for the credit.  You will have to add any other qualified expenses (like books and materials) and subtract any expenses that the scholarship can pay for that are unqualified expenses (like room and board).  You will want to make sure of these details and keep them with your tax records. 

 

In TurboTax, look for the screens below to make the adjustments.

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