Am I eligible for the American Opportunity Credit?

[shoook]

I was enrolled as a full-time student in 2011 and 2012 working towards a bachelor's degree. I then stopped attending and resumed as a part-time student at another institution in 2013, 2014, and 2017. I just completed my associate's degree in 2017. I have taken advantage of the American Opportunity Credit in two prior years. Am I eligible for the American Opportunity Credit in 2017 assuming I meet income requirements?

[KarenJ · Accepted solution]

Yes, it can be taken on any 4 tax years as long as you still qualify for the credit.

You are eligible for the American Opportunity Credit according to the TurboTax FAQ:

Who is eligible to take the American Opportunity Tax Credit?

Qualifications for claiming the American Opportunity Tax Credit are:

• You paid qualified education expenses for higher education (see Related Information below)
• You paid education expenses for eligible students
• The eligible student is you, your spouse, or a dependent for whom you claim an exemption
• Your modified adjusted gross income is $90,000 ($180,000 if married filing jointly) or less (The credit is reduced between $80,000 and $90,000 ($160,000 and $180,000)
• You must be taking courses at an eligible education institution, which is any college, university, or vocational school with a student aid program administered by the US Department of Education.

You must be considered an eligible student:

• You are enrolled at least half-time in a program leading to a degree, certificate, or other recognized credential
• You had at least one academic period beginning during the year
• You did not use the American Opportunity Tax Credit in any four previous years
• You did not complete the first four years of post-secondary education before the beginning of the year

You are not eligible to claim the American Opportunity Tax Credit if:

• Your filing status is Married Filing Separately.
• Taxpayer is listed as a dependent on another person’s return.
• You and your spouse were non-resident aliens.
• You have a felony drug conviction.

[shoook]

Thank you, my main question is regarding the 4 years of college-level credit. I have received college credit in five years now but I am assuming that doesn't necessarily mean I have received 4 years of college-level credit due to the fact that I was a part-time student for part of it?

[KarenJ]

Hi.  You indicated that you received an associates degree in 2017.  An associates degree is generally a degree granted after a two-year course of study, especially by a community or junior college.   Generally, a four-year degree indicates that you have completed about 120 semester credits or 180 quarter credit hours.  You will receive a Bachelor's degree once you have completed the correct number of credit hours and the other requirements of your school for this degree.

[shoook]

That makes sense, thank you!

[marion-couprie]

Does this mean that you can claim the American Opportunity Credit after having received an associate degree, but before graduating with a Bachelor? Meaning being eligible the 2 years after an associate is received?

[mhjk2248]

My daughter to college for 2015 (Fall), 2016, 2017, 2018 and 2019 and has not completed all credits to get a bachelor's degree. she is working to toward a degree (will graduate on May 2020. Her parents (us) claimed the American Opportunity Tax Credit for her on 2016, 2017 and 2018 tax years (3 tax years).

Is my daughter eligible for the AOTC for 2019 tax year ? How to fill out Part III line 25.

Thank You

ML