If I was charged with a felony conspiracy, not a felony possession charge, will I still be able to claim the American Opportunity Tax Credit?

Forum|Forum|5 years ago
March 16, 2021
3 replies
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My lawyer in court told me that a conspiracy charge is not the same as a drug possession charge.

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SundayInSalem

Level 8

You have to be convicted of a felony drug charge to be ineligible for the American Opportunity Tax Credit. If you were charged, but not convicted, then you still qualify.

The IRS says, “Students must have no felony drug convictions as of the end of 2020.”

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DawnC

Level 15

Conspiracy charges can come in felony or misdemeanor forms, and people charged with conspiracies could potentially be subject to both a conspiracy charge and a charge of the underlying crime at issue. This is not a legal forum, so your lawyer can advise you best as to what your charges are or are not. As far a claiming education credits on your tax return, the following is a requirement of claiming the American Opportunity Tax Credit:

Not have a felony drug conviction at the end of the tax year

No charge alone disqualifies you, only a conviction of a drug charge.

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bat1189Author

Level 2

Hi,

Yes, I was convicted. But my question is about the difference between conspiracy and drug possession. I was convicted of conspiracy. I have that on my record. But not possession. I was not convicted of drug possession. My question is for the AOTC, does the IRS consider conspiracy a drug possession charge? (in the penal code they are in separate sections)

ToddL99

Level 13

No, a felony conspiracy conviction would not disqualify you for the American Opportunity Tax Credit.

Publication 970 Tax Benefits for Education defines "felony drug conviction" as a "felony for possessing or distributing a controlled substance" (Table 2-1, Page 11).

"Conspiracy" and "possession/distribution? are two distinct crimes. You can conspire to "possess or distribute a controlled substance", without ever doing so. You can also be convicted of conspiracy to commit a crime without committing the crime itself.

manhatt3n

Level 2

I was also charged with a felony conspiracy to possess a controlled substance about 15 years ago. I know this tread is old but were you able to get the tax credit. I would like to apply for it this year but am unsure if my previous conviction will disqualify me.

SusanY1

Level 15

If you were convicted of a drug-related felony, you are not eligible for the credit.

Misdemeanor convictions or charges that do not result in convictions would not disqualify an individual from this credit.

You may still be eligible for the Lifelong Learning Credit, which does not have the requirement that the student have no felony drug convictions.

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manhatt3n

Level 2

ToddL99 who also replied on this thread says differently. Is there any sources tax confirm or deny the eligibility based off its conspiracy charge? Does the IRS run a background check for individuals applying for the credit?