Can I take the American Opportunity Credit?

[apstndp]

The las conditions states as follows:

- A full-time student over age 18 and under age 24 at the end of 2016 and you earned income was less than one-half of your support?

I am a part time student at a community college and the 1098-T forms states in line 8: "check if at least half-time student" that box is checked.

i am concerned with the words "full-time student". I am considered a full-time student for tax purposes?

[ThomasM · Accepted solution]

You're mixing up two separate sets of requirements:  to be a dependent, and to claim the AOC.

To claim the AOC, your age & dependency status don't matter.  But you have to be at least a half time student for at least one academic period beginning during the tax year.  You also have to be enrolled in a degree program and not have claimed the credit in four previous years.  The AOC is only available for the first four years of eduction, so it's unavailable to graduate students.

When you speak of age & "full-time" student status, you're talking about a dependency requirement.  That's completely distinct from the AOC requirements.  To be claimed as a Qualifying Child (one type of dependent) by a related person, you have to be under age 19 (or under age 24 if a full-time student) and you cannot provide over half your own support.  There are also additional tests; see this link https://www.irs.gov/pub/irs-pdf/p17.pdf for all the requirements (see page 25).

Another type of dependent is the Qualifying Relative, which has its own set of requirements, including gross income.  See the above link for those requirements, as well.

[apstndp]

Thomas, I think this is for the refundable portion of AOC. it reads as follows:

certain students do not qualify for the refundable portion of the American opportunity credit. if all three of the following conditions apply, you do not qualify for the refundable portion of the credit:

1. you were:
- under age 18 at the end of 2016, or
- age 18 at the end of 2016 and your earned income was less than one-half of your support, or
- A full-time student over age 18 and under age 24 at the end of 2016 and you earned income was less than one-half of your support.

2. at least one of your parents was alive at the end of 2016
3. you are not filing a joint return for 2016.

[ThomasM]

Okay, I understand what you're saying.  You're asking if you qualify for the refundable portion of the AOC, and what constitutes a full-time student.  According to IRS Publication 17, a full-time student is defined as follows: "A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance."   IRS Publication 970 further states that, for the AOC, enrollment must be for "at least one academic period beginning in 2016 (or the first 3 months of 2017 if the qualified expenses were paid in 2016). . ."

Basically it's saying that your school decides what is a full-time work load.  I think back to my college, and it considered 4 classes per (non-summer) semester to be full-time.  And 4 classes meant 12 credit hours.

How many hours were you taking?

[apstndp]

Thanks Thomas. I am considered a part-time student. also as mentioned, above, the 1098-T forms states in line 8: "check if at least half-time student" that box is checked in the form.

[apstndp]

According to the IRS, to  qualify for the AOC, one has to be at least half-time student right?

[ThomasM]

Yes, that's correct.

[apstndp]

just to make sure Thomas, I do qualify for the refundable portion of the American opportunity credit right? condition # 1 one does not apply to me as i am not a full-time student.

[ThomasM]

If condition #1 does not apply to you, then you qualify for the refundable portion of the AOC, provided you meet the basic requirements of the AOC itself (listed above in my original post).

[apstndp]

Thanks Thomas!!!

[Laurensharkey]

Hello,

Thank you for providing all of this information. I hope you don't mind me chiming in as I have a separate but related question on the AOC eligibility requirements..

I amended my 2016 tax return during this past 2019 tax season because I did not know about the AOC back then, and was advised by my tax preparer that I qualified for it. I anticipated on receiving the maximum amount of refundable credit, however, the IRS recently sent mw a letter stating they partially disallowed my claim for credit (only allowed $13.00 of the claim). The reason states "We disallowed the AOC on your Form 8863, Education Credits, because the student listed must be enrolled at least half-time for at least one academic period"

The "enrolled at least half-time" box on my 1098-T is also checked off by my university, and I was enrolled for the entirety of the Fall 2016 semester. I did NOT attend school in the Winter/Spring/Summer 2016 semesters.

Based on the above circumstances, do you know why I would have been partially denied the claim? Not sure if I am truly ineligible, or if it has to do with the fact that it's an amended tax return, or (hopefully) a mistake was made...

Any thoughts/feedback would be greatly appreciated!