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New Member
posted Feb 22, 2022 10:58:59 AM

I didn't qualify for the American Opportunity Credit, but non of the situations applied to me that normally disqualify a person

What would disqualify me from receiving this credit if the normal disqualifiers do not apply?

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2 Replies
Expert Alumni
Feb 22, 2022 11:18:26 AM

I don't know what normal disqualifiers you're referring to in relation to the American Opportunity Tax Credit (AOTC).

 

A student to be eligible for the AOTC:

  • If you're a dependent on someone else's tax return and you're filing your own tax return, you wouldn't be able to claim the credit. The person claiming you would claim the credit.
  • If you took the credit for four (4) years, you wouldn't be able to claim the credit.
  • The law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition Statement, from an eligible educational institution, whether domestic or foreign.
  • You have to be pursuing a degree or other recognized education credential.
  • You have to be enrolled at least half time for at least one academic period beginning in the tax year. 
  • You can't have a felony drug conviction at the end of the tax year. 
  • You can't have finished the first four years of higher education at the beginning of the tax year

Source: IRS 

 

 

Level 15
Feb 22, 2022 12:50:29 PM

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, even if you don't qualify as a dependent, 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. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

 

If you are eligible, you have answered  something wrong, in the interview. But, a lot of people are just not eligible. You will be asked the earned income support question in the personal info interview.

 

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