topic AOTC eligibility in Education

AOTC eligibility

Deja1212 — Sat, 25 Jan 2025 08:39:46 GMT

If I paid my tuition in December of 2024 and got a 2024 1098-T, but didn’t start classes full time until January 2025, do I qualify for the AOTC for 2024? Do I put that I was at least half time even if the box isn’t checked on my 1098-T due to not starting classes yet?

Re: AOTC eligibility

Hal_Al — Sat, 25 Jan 2025 12:28:38 GMT

Q. Do I qualify for the AOTC for 2024?

A. Yes. This is a common situation and the the rules were specifically written to allow it. In fact, you "must" claim it on your 2024 tax return. You do not have the option of postponing claiming it to 2025, since the payment was made in 2024.

Q. Do I put that I was at least half time even if the box isn’t checked on my 1098-T due to not starting classes yet?

A. Yes. Since the term you actually attended was half time or more.

Re: AOTC eligibility

Deja1212 — Mon, 27 Jan 2025 22:37:04 GMT

I found this on the IRS website. “For 2024, you must treat an academic period beginning in the first 3 months of 2025 as if it began in 2024 if qualified education expenses for the student were paid in 2024 for that academic period. See Prepaid Expenses, later.

Example.

You enroll on a full-time basis in a degree program for the 2025 spring semester, which begins in January 2025. You pay your tuition for the 2025 spring semester in December 2024. Because the tuition you paid in 2024 relates to an academic period that begins in the first 3 months of 2025, your eligibility to claim an American opportunity credit in 2024 is determined as if the 2025 spring semester began in 2024. Therefore, you satisfy this third requirement“ -IRS