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New Member
posted Feb 3, 2021 9:19:44 AM

How do I change the answer for the American Opportunity Credit. The student has not completed 4 years of college

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2 Replies
Expert Alumni
Feb 3, 2021 9:40:27 AM

You can change the answer for the American Opportunity Credit as follows:

  1. Type 1098-T in the search bar.
  2. Select the Jump to 1098-T.
  3. Continue with the onscreen interview.
  4. On the Was XXX working on an Associate, Bachelor's or Graduate Degree? screen, answer Yes.
  5. Continue with the onscreen interview until you get to the Had XXX earned four years of college credit before 2020? screen, answer No.
  6. Continue with the onscreen interview until complete.

 

Qualifications for claiming the American Opportunity Tax Credit are:

  • You paid an eligible student's qualified education expenses for higher education at any college, university, or vocational school with a student aid program administered by the US Department of Education.
  • The eligible student is you, your spouse, or a dependent on your return.
  • For the full credit, your MAGI (modified adjusted gross income) is less than $90,000 ($180,000 if you're filing jointly).
    • For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly).

An eligible student is defined as a student who:

  • Is enrolled at least half-time in a program leading to a degree, certificate, or other recognized credential.
  • Had at least one academic period beginning during the year.
  • Didn't claim the American Opportunity Tax Credit for more than three previous years.
  • Didn't complete the first four years of post-secondary education before the beginning of the year.

The American Opportunity Tax Credit cannot be claimed on Married Filing Separately returns nor under any of these conditions:

  • The student is a dependent on someone else's return.
  • The student is a nonresident alien (unless the student's spouse is a resident and they file a joint return treating both as residents, or the parents claim the student as a dependent on their joint return).
  • The student had a felony drug conviction.

Level 15
Feb 3, 2021 10:09:58 AM

Alternate way to get there:

 Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”.