My daughter withdrew all of her classes and wonder if I still can claim any tax credit

[fhendrik]

Hi,

My daughter just started her 4 years college in  August 2020. She took 4 classes but had to withdraw all of her classes medically before her finals in mid December. I received some refunds in 2021 and I received 1098-T. My question is can I still include 1098-T to my tax refund and claim any tax credit like the American Opportunity tax credit? The half time/full time is not checked on 1098-T? If I cannot claim American Opportunity tax credit can I claim other tax credit like Lifetime Learning Credit? Thank you for your help.

[MinhT1]

As she is not a at least half time student, you cannot claim the American Opportunity credit for her.

She may be eligible for the Lifetime Learning credit.

Please read this IRS document for more information.

[Hal_Al]

You cannot claim the AOC.  You can claim the LLC.  You should reduce the box 1 amount on the 1098-T by any refund received in 2021. 

[fhendrik]

Thank you for your answer. Should I reduce the box 1 amount on the 1098-T by any refund received in 2021?

[Hal_Al]

Q. Should I reduce the box 1 amount on the 1098-T by any refund received in 2021?

A.  Yes.  You are allowed to do that.  What you enter in TT is not matched by IRS computers