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I qualify for the American Opportunity Credit but the system is not calculating it. Is there a glitch?

According to the site information provided I should qualify
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2 Replies
Hal_Al
Level 15

I qualify for the American Opportunity Credit but the system is not calculating it. Is there a glitch?

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. 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. See Also see this TT FAQ https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expen...

 https://www.irs.gov/Individuals/AOTC

https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

https://ttlc.intuit.com/community/college-education/discussion/i-have-a-1098-t-form-that-i-received-...

 

 

BrittanyS
Expert Alumni

I qualify for the American Opportunity Credit but the system is not calculating it. Is there a glitch?

The eligibility requirements for the American Opportunity Credit are as follows:

 

  • Be pursuing a degree or other recognized education credential
  • Be enrolled at least half-time or at least one academic period* beginning in the tax year
  • Not have finished the first four years of higher education at the beginning of the tax year
  • Not have claimed the AOTC or the former Hope credit for more than four tax years
  • Not have a felony drug conviction at the end of the tax year

There is also a phase-out period if the following is met for 2022:

 

  • Single taxpayers with adjusted gross income between $80,000 and $90,000.
  • Joint tax filers when adjusted gross income is between $160,000 and $180,000.
  • The credit is unavailable to taxpayers whose adjusted gross income exceeds the $90,000 and $180,000 thresholds.

If you do not fall in the phase-out period and meet all the requirements, follow these steps to claim the credit in TurboTax:

 

  1. Click Deductions & Credits
  2. Scroll down to Education, Select Start next to 1098-T
  3. Answer interview questions

 

For more information, see the link below:

 

American Opportunity Credit

 

@jessicat 

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