I don't know if this is the correct forum because I am not sure it this in any way effects the W4 but I have questions regarding the American Opportunity Tax Credit and Lifetime Learning Credit and 529 plans. To explain my situation:
I am 42, I file as single-never married with no dependants and I live in Arizona. Since August of 2023 I have been taking courses from Arizona State University (online) through a platform callled Universal Learner. This platform allows individuals to take general education (i.e. math, science, first year composition-english type courses) that upon successful completion can be transcripted to ASU or another accredited university. People who take these courses are NOT enrolled at ASU (you cannot take courses on the Universal Learner platform and be enrolled at ASU at the same time). You pay for the courses out of pocket and you they do not qualify for student aid. I have taken $4800 worth of classes that I have transcripted to ASU because this fall I will be enrolled in a bachelor's degree program from ASU.
My question is: would the $4800 I have paid to ASU qualify under the American Opportunity Tax Credit this year? I have accepted my financial aid package for the 2024-2025 school year and this included a small Pell grant and federal studen loans, $5309 disbursed in fall 2024 and $5308 disbursed in spring 2025. Would this mean I was eligable to apply for the AOTC on my taxes that will cover this year? Since I can not do both the AOTC and the Lifetime Learning Credit (LLC), should save the LLC for any master's level degree pursuits? Also, when it comes to 529 plans, how exactly does that work-will the money I put in the plan lower how much taxes I owe or is just money that I can use for education expenses that I can use tax free? Thank you.
