topic Why is turbo tax saying I qualify for the american opportunity credit? in Deductions & credits

Why is turbo tax saying I qualify for the american opportunity credit?

Kairo — Sat, 01 Jun 2019 06:34:30 GMT

I am 37 years old and am enrolled at least half-time in an undergraduate program. I have been working on my BA for more than 10 years. I got my associates in 2012 took time off and went back to school in 2016. Turbo tax is saying that I qualify for the American Opportunity Credit but I am hesitant because it says you can only claim it during the first 4 years of school (undergraduate). I have never claimed this credit I always claimed the Lifetime Learning Credit because I am not sure what constitutes 4 years. Does anyone know how this works? I don't want to claim it and then get audited.

If you are working toward a four-year degree, you will me...

Fern — Sat, 01 Jun 2019 06:34:31 GMT

If you are working toward a four-year degree, you will meet the part of the definition of an eligible student defined as “has not completed the first four years of post-secondary education as of the beginning of the taxable year”. The fact that you have taken more than 4 years working toward the degree is not what is being measured. The fact that you have not completed it yet is what is being measured.

However, it is important to keep in mind that you can only take the American Opportunity Credit for 4 years. If you have taken the credit 4 times, you are no longer eligible even if you have not earned a four year degree in that time.