I answered that the American Opportunity Credit was taken 1 time but the 8863 line 23 says no. Is this correct? It was taken in 2015 and I am preparing 2016 return.

[AnthonyC · Accepted solution]

Yes, it is correct.  When it says "any 4 tax years" it means for a total of 4 years across any amount of tax years.  So, once you use it 4 times, then that answer will change to YES and you will be limited to using either the Lifetime Learning Credit or the the Tuition and Fees Deduction.

Here are the full instructions for that Line 

Line 23 

If the American opportunity credit has been claimed for this student for any 4 tax years before 2016 (including any year for which the Hope scholarship credit was claimed for the student), the American opportunity credit cannot be claimed for this student for 2016. Check “Yes” and go to line 31. 

If the American opportunity and Hope scholarship credits have been claimed for this student for 3 or fewer prior tax years, check “No.” See Student qualifications, earlier

[taxlady3]

Thank you.  I can up with the same problem and your explanation was great.  Thank you..