Eligible to claim full year's expenses for AOTC if only part time and only took one semester?

[Nhernandez91]

For the American Opportunity Tax Credit (AOTC), the IRS states "must be enrolled a minimum of half time for at least one semester." Does this mean that all tuition costs for the entire tax year are able to be claimed, up to the max limit, as long as part time status was obtained at least one semester that year, even if the student only took one semester that year? My 1098-T form says I am a half time student but I want to confirm. I took one semester in 2018 and one semester in 2019 both part time and both 1098-T's said I was a half time student. I just found out about this credit and when I called the person who prepped my taxes for me they told me I did not qualify for it because I was not a fulltime student and I was a graduate even though 2018 was only my first year ever going to college so wouldn't I have been considered an under grad? He told me the credit I was given was a Lifetime Learning Credit that year, I just feel he was wrong and I wanted some advice 

[SusanY1]

Whether you are a graduate student or an undergraduate student depends upon the degree you are seeking.  If you enroll in a program that leads to a graduate or professional degree (a master's degree, for example), then you are a graduate student. 

The 1098-T for a graduate student is marked with a graduate student checkbox, which may be why your tax preparer made this decision. 

Since the American Opportunity Tax Credit (AOTC) has a slightly higher limit, many taxpayers and tax preparers will choose to use the Lifetime Learning Credit in a year when the benefit would be equal to any benefit received from the AOTC. This allows the taxpayer to save the AOTC for use in a year when it could be more valuable. 

If you feel like the AOTC would have been better for you in 2018, it is possible to amend the return to claim it. For most part-time students, the Lifetime Learning Credit is a better option. 

[Nhernandez91]

Thank you for your help Susan, So I actually checked my 2018 1098-T and it says I am a half time student with a check mark on that, the graduate option does not have a check mark and this is both for my 2018 and my 2019 1098-T. Since he claimed the LLC can I still claim AOTC for this year or will it be declined since he submitted LLC? Will it be worth amending to fix or can I just leave it and still claim aotc 3 more times after this year? Also I was in school for one semester in 2018 and one in 2019. Will I still be able to claim AOTC if I only took one semester each year? Again both years I was considered a half time student according to my 1098-T's. All of my tuition and books were paid for out of my own pocket. 

Thank you again

[SusanY1 · Accepted solution]

Taking the LLC means that you can still claim AOTC for four more years. 

You have up to three years, generally, to amend a return and claim any additional refund that may be due on a tax return.  You may wish to prepare an amended return to see if it would result in an additional refund to you - if it does then you will want to consider what your future plans for school are and whether or not you believe still have four years of study at the undergraduate level ahead of you.    

You can switch between the two types of credits, but you cannot use the AOTC more than four times, you cannot use it in years when you are enrolled less than half-time, and you cannot use it for graduate courses. 

Yes, you can still take the AOTC even though you took your classes over the course of two different calendar years. 

[Nhernandez91]

Thank you so much this really clears a lot up for me! Thank you for your time and I hope you have a great rest of your day!

[Nhernandez91]

One last thing, What would be considered less than half-time? and I assume I am fine being that my 1098-T says I was a half-time student and has the check mark in that box.

[JohnB5677]

 Half-time status means enrolling in six credit hours per semester. Taking fewer than six credit hours would be considered less than half time.  Also, if your enrolled and attend Full Time for a semester you are considered At least half-time.