AOTC eligibility

[gator593]

Hi.  Can you please confirm if we are eligible to receive the American opportunity tax credit (AOTC)?  My son is in his first year of college.  He earned two scholarships that together covered the cost of tuition and fees in 2024.  He also has the Florida Prepaid Plan that afforded him a refund for use on other non-qualifying expenses such as transportation.  Does this disqualify us from claiming the AOTC even though we incurred expenses in prior years for the prepaid plan and he worked hard to earn scholarships? Thank you for your insight!

[MarilynG1]

Yes, it sounds like you would not be eligible for the AOTC for 2024.  This credit is to help defray 'out of pocket' expenses you incurred, and since his scholarships covered  his tuition and fees, there's no indication of additional expenses you incurred in 2024.

You can enter 'Other Education Expenses' for books, other fees, etc. that are not included in the Tuition amount in Box 1 of the 1098-T, which may qualify you for a credit.

Here's more detailed info on the American Opportunity Credit. 

@gator593