1098-T and community college

[bpaycheck]

My son graduated HS and moved on to community college and has been working on associate degrees, no set 4 year program like a regular college. He received a 1098-T but I am insure how to enter it.

On the worksheet, part 2, it asks "did the student complete the first 4 years of a post secondary education as of 1/1/2022?"

His courses are not 4 year courses (all are associate courses with no set freshman-senior stuff). Would the appropriate answer be "No"?

He has one AS degree and is working on another. He started more than 4 years ago.

Thanks for the help!

[Vanessa A]

Correct, the appropriate answer would be no if he has not completed 4 years of school yet.  If he has a bachelors degree or 2 separate Associate degrees that took him 4 years to complete then the answer would be yes.  Basically, you can only claim that credit for 4 years. 

[bpaycheck]

Thanks for the reply. To clarify, is that 4 consecutive years? He has been at it for over 4 years total. Work, money,  and covid got in the way  few times.

The timeline is whats throwing me off.

[Vanessa A]

No, it is not 4 consecutive years. It just the first four years of higher education in pursuit of a degree or recognized credential.

[bpaycheck]

I did some digging and have better info. He has two AS degrees, both earned prior to 2021. The 1098T for 2021 is for follow up CC courses. We did not have any education expenses in 2020 so no 1098T there.

Sorry for the bad info.

[bpaycheck]

So, I'm thinking this would be a no then? Correct? Can't claim it?

[KrisD15]

I think you would claim it.

If the 1098-T is for college credits and the student has not yet obtained a bachelor degree, you can claim the expenses paid in 2021 towards a credit. 

"On the worksheet, part 2, it asks "did the student complete the first 4 years of a post secondary education as of 1/1/2022?"

You would answer "no". 

If the courses are for college credits, the expense would count. 

Until the student earns a bachelor degree they are considered as within the first 4 years of a degree. 

The American Opportunity Tax Credit may only be claimed 4 times for that student, then you might be eligible for the Lifetime Learning Credit.