Education credits are not something that can be rolled over. They are use it or lose it in the year that you attend and pay for your education. If you were eligible to receive an education credit, you would need to go back and amend your 2022 tax return.
There are two education credits. One is the Lifetime Learning Credit. This is a nonrefundable credit. That means, if you do not have a tax liability, you would not get the credit. The other is the American Opportunity Tax Credit. This one is worth up to $2,500 but is only refundable for up to $1,000.
You can go back and look for form 8863 in your return from 2022 to see if you received any credit at all. If not, you may not have been eligible, but if you believe you were, then you may want to amend and revisit your answers in the education section.
The qualifications of the credits are below:
Lifetime Learning Credit
- You can take this for an unlimited number of years
- Twenty percent of expenses up to $2,000
- Non-Refundable meaning this can reduce the amount of taxes you owe, but if your tax liability is less than the LLC, your tax will be reduced to $0 and the rest of the credit is lost.
- Cannot be claimed as a dependent on any one else's return
American Opportunity Tax Credit
- Available for the first 4 years of college
- Max amount is $2,500 per student
- Partially refundable credit meaning if your tax liability is $0, 40% (up to $1,000) is refundable
- Be enrolled in a degree or credential seeking program
- Not have a felony drug conviction
- Be enrolled at least half time
- cannot be claimed as a dependent on anyone else's return.
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