Opportunity Credit

[winchell318]

Our son is attending a 4 year approved college and we have claimed the American Opportunity Credit for his freshman and sophomore year (2 years only) and he is currently in his junior year (3rd year) and according the the tax law, we can claim it for 4 years.  We answered all the questions and then at the end it says we can claim the education tax break, because there were no net qualified education expenses. What are net qualified expenses?

[LinaJ2020]

That means there are no education expenses available to claim the tax break.  How is the Form 1098-T reported?  Has he received any scholarship amount?

It sounds to me he received a scholarship and it covered all his tuition amount.  Therefore, there are no qualified education expenses left for you to claim the tax break.

[NCperson]

would you mind posting the numbers in Box 1 and Box 5 of the 1098-T

I may offer an alternate response than has been provided. 

[winchell318]

He has not received any scholarships.

Line 1: dollar amout listed

Line 2: blank

Line 3: blank

Line 4: blank

Line 5: blank

Line 6: blank

Line 7: checked

Line 8: checked

Line 9: blank

Line 10: blank

[winchell318]

Line 1: $9,988..60

Line 5: blank

[KathrynG3]

It depends. You will need to go back through your entries and verify all input.

If you also needed to enter Form 1099-Q, any room and board should be taken from 1099-Q funds first. If you are not subject to the income limitations for the American Opportunity Tax Credit and have at least $4,000 of expenses still available for the credit, then you are eligible to claim it. 

[NCperson]

delete the 1098-T and re-enter... as long as your income is less than $160,000, you should be getting AOTC for $2500.…. Box 1 exceeds $4,000 so it should work,.