topic American Opportunity Credit in Deductions & credits

American Opportunity Credit

Tim116 — Mon, 09 Mar 2026 09:13:56 GMT

My son (dependent) completed his undergrad degree in 2021 and started grad school later in the year. TT is indicating that he does not qualify for the credit as he has completed four years of education (based on entering 1098 for grad school). IRS indicates that qualification for the credit is not having completed four years of education at beginning of tax year - which he had not. Is this a software bug? Any suggested ways to override?

Re: American Opportunity Credit

JohnB5677 — Thu, 03 Mar 2022 17:28:53 GMT

No, you can not override it. The AOTC is limited to four years. If he claimed it for the beginning of his Freshman year it will have completed the cycle. American opportunity tax credit

However, he may be eligible for the Lifetime Learning Credit lifetime learning credit. there is no time limit on this credit.

To claim the LLC, you must meet all three of the following:

You, pay qualified education expenses for higher education.
You, pay the education expenses for an eligible student enrolled at an eligible educational institution.
The eligible student is yourself, your spouse, or a dependent you listed on your tax return.

Re: American Opportunity Credit

Tim116 — Thu, 03 Mar 2022 18:11:15 GMT

Hi John - thanks for your response. We however did not start taking the Credit until last year - which I believe means that he is eligible for it in 2021. I believe that the reason TT is not calculating it is because item 25 on Form 8863 is answered to indicate that the student completed four years of postsecondary education before 2021 - which he had not. I do not believe that I answered that during the "interview" process. Any thoughts on how to change that answer to no? Thanks again

Re: American Opportunity Credit

MayaD — Thu, 03 Mar 2022 18:33:03 GMT

To change your answer:

Go to Federal Taxes,
Go to Deductions and Credits.
Scroll down to Education and click show more.
Scroll down to Expenses and Scholarships (Form 1098-T) and click Revisit.
On the screen You Education Expenses Summary select Edit next to the student name.
Scroll down to Education Information and click Edit.
Continue until you get to the screen Had (your son) Earned Four Years Of College Credit before 2021?