AOC

[Dubostica]

Hi,

My stepdaughter lives with us and this is her scenario:

w-2  $34351.00  ,   1098-t    (box1 $8969   box 5 $4344)

dob 04/24/1996 ( as of 01-01-2021  =24 years and few months)

as of 01/01/2020 did not complete 4 years of college Graduated may 20 2021

( IT t took her five years to finish school) never claimed AOC BEFORE

one semester in 2021 Jan - May 16 full time student

Obviously we can not claim her but her concern is taking longer than 4 years to graduate( 3rd year took her longer than it should)

Is  the number of years  an issue because it took her a little longer to complete  education.  will this   disqualify HER  from AOC ?

[Bsch4477 · Accepted solution]

As long as she did not receive AOC for 4 years she can claim it. 

[Hal_Al · Accepted solution]

The rule you may be thinking of is: 

• Not have finished the first four years of higher education at the beginning of the tax year

If she did not graduate until May 2021, she almost certainly meets this rule.

The other rule is that she and/or her parents (or other  person claiming her as a dependent) must not have already claimed the AOC 4 times in the past, on her education.  

[Dubostica · Accepted solution]

NO BODY CLAIMED  AOC BEFORE  .NO PARENTS OR STEP PARENTS THIS WOULD BE FIRST TIME AMERICAN OPORTUNITY CREDIT IS BEING USED FOR HER  

I AM BUFFLED  BY YOUR LAST SENTENCE :

"What's more likely is that you, the parents, have already used up her allowable 4 times for claiming the AOC."

what does it mean? She  QUALIFIES OR NOT ?

thank you so very much

SO SHE SHOULD QUALIFY?

[Hal_Al · Accepted solution]

Yes, she should qualify for the AOC. 

But, I'm baffled by the fact that a 24 y.o. student, with more tuition than scholarships, in her 5th and final year of undergrad education has not had the AOC claimed by herself or the person who claimed her as a dependent, in the past.  It's a 40% refundable credit.

Was an opportunity missed? Does somebody (the student or, more likely, the parent) need to be filing amended returns for 2018 and 2019? It's too late, most likely,  to amend a 2017 return.

[Dubostica · Accepted solution]

thank you

[Dubostica · Accepted solution]

one more quick thing,

somehow i made typo in year of graduating

as of 01-01-2020 she did not finish 4nyears of college

last class may 17 2020

graduated may 20-2020   NOT 2021 like i miswrote before

MY APOLOGY

hopefully this  is not changing and she still qualify?

[Hal_Al]

Q. Graduated may 20-2020,  NOT 2021 hopefully this  is not changing and she still qualifies?

A. Yes.

[Dubostica]

I'm so  sorry just want it to be 100 % sure i understand.

so YES is for  she  QUALIFY ?

my apology

[Dubostica]

I'm so  sorry just want it to be 100 % sure i understand.

so YES is for  she  QUALIFY ?

my apology

THX

[Hal_Al]

YES is for  she  QUALIFY