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American Opportunity Credit Confusion

Hello,

 

This year I'm really confused with the American Opportunity Credit. Turbo Tax has asked me if I've claimed this credit in previous years which I thought I have, but when I look at the 8863 form on previous years it says I have not. I'm confused because TurboTax normally says I'm eligible for the AOC which I've always claimed, so why is my past tax returns saying I didn't? 

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6 Replies

American Opportunity Credit Confusion

Often that credit is used by the parents of students who are dependents while they are in college, so the credit is shown on the parents' return instead.   When you are trying to figure out how many times the credit has been used, you also need to factor in whether it was on a parent's return instead of your own.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
KrisD15
Employee Tax Expert

American Opportunity Credit Confusion

Line 23 on Form 8863 asks if the Taxpayer claimed "any 4 prior years" meaning ALL FOUR.

If you had not used the credit four times already, that question should be marked "No". 

 

It is a bit confusing, but that's how the IRS wrote it.  

 

Form 8863

 

@ItsHarmie

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American Opportunity Credit Confusion

Thank you for getting back to me. I probably should have mentioned that my parents have not claimed me in years as I'm almost 30 and having been doing my own taxes since 2019. Since 2021 I've qualified for the AOC on TurboTax and I always take it, so I'm not sure it says the AOC has not been claimed in the last 4 year on previous returns (line 23 is marked no).

 

There is also the AOC section on the very bottom where I do have numbers for adjusted qualified education expenses.

Vanessa A
Employee Tax Expert

American Opportunity Credit Confusion

So you have form 8863 included in your previous years tax returns, but line 23 on them are marked no? Are there numbers on line 8 of form 8863? Is there an amount on line 19?

Also, look at line 29 of your 1040 from last year.  Is there a number on line 29?  If so, then you were given the credit.  If not, look at form 8863 and double check your answers to see if they are all correct.  

If you did receive the credit in past years, and you verify it on your paper return, then you would simply select yes you did receive it and then number of years you did so when asked. 

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American Opportunity Credit Confusion

Thank you so much for helping me on this. There is an amount on lines 8 and 19. I knew I did recieve the AOC in previous years but not sure why it's marked as No on my returns even though I say I have on TurboTax.

American Opportunity Credit Confusion

That makes so much sense now, it was so confusing. Thank you!

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