topic Can I amend my tax return to claim AOTC instead of deduction in Education

Can I amend my tax return to claim AOTC instead of deduction

space bebop — Sat, 03 Apr 2021 01:06:10 GMT

Hi! So this is my first year to file my tax independently, and I didn't know about AOTC before. I just found it out after I submitted my tax return weeks ago. Weirdly, Turbotax suggested make tuition fees as part of the deductions instead of claiming AOTC. After some research, I think I am eligible for full 1,000 dollars credit. So, as the title says, can I amend my return to claim AOTC and omit the tuition fees deduction?

Re: Can I amend my tax return to claim AOTC instead of deduction

Bsch4477 — Sat, 03 Apr 2021 01:35:03 GMT

You can amend your return but wait until your original return is processed and you got your refund or paid your tax liability.

Re: Can I amend my tax return to claim AOTC instead of deduction

AmyC — Sat, 03 Apr 2021 01:41:18 GMT

Yes, if you qualify for the AOTC. The AOTC is only good for 4 years so if you only have one semester of tuition, you may want to wait and use it when you have 4 full years of tuition. You would not need to amend your state return.

Once your original return is accepted and the finances are settled, you can file an amended return.

Save a copy of the original return before doing an amended return. See:
Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return? Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.

Re: Can I amend my tax return to claim AOTC instead of deduction

SweetieJean — Sat, 03 Apr 2021 01:48:50 GMT

You can get a maximum annual credit of $2,500. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

The amount of the credit is 100 percent of the first $2,000 of qualified education expenses you paid, and 25 percent of the next $2,000 of qualified education expenses.

Re: Can I amend my tax return to claim AOTC instead of deduction

DanielV01 — Sat, 03 Apr 2021 03:11:14 GMT

@SPACE bepop You can claim the AOTC if it has not been claimed on your education for 4 years already (even by your parents if you were a dependent on prior returns). If you qualify for this, and the Tuition and Fees deduction was claimed instead, you could, in fact amend your return to claim AOTC instead. This link explains how: How to amend (change or correct) a return you already filed

Re: Can I amend my tax return to claim AOTC instead of deduction

Hal_Al — Sat, 03 Apr 2021 11:10:01 GMT

@space bebop said "After some research, I think I am eligible for full 1,000 dollars credit."

TurboTax most likely selected the Tuition and Fees deduction because you were not eligible for the AOTC.

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working (earned income). You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants. It is usually best if the parent claims that credit.

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.