No W-2 but 1098-T

[yasminmacedo]

Can I still file my taxes if I didn’t work last year but have a 1098-T and want to see if I qualify for the American Opportunity Tax Credit?

[KrisD15]

Does someone claim you as their dependent? 

Did you have education expenses that you paid out-of-pocket?

What is in Box 1 and Box 5 on the 1098-T?

[yasminmacedo]

1. No 

2. Yes, books 

3. box 1: $48401.10 box 5: $40015.00

[KrisD15]

Yes, first fill out the "Personal Info" section.

Next enter Form 1098-T under 

Deductions & Credits

Education

Expenses and Scholarships (Form 1098-T)  

Continue through the interview. 

Only if you are eligible for the American Opportunity Tax Credit might you end up with a refund. 

The Lifetime Learning Credit is non-refundable, meaning it can only reduce your tax liability. 

If anyone else (like your parents) claimed the American Opportunity Tax Credit as you being the student, that would count against the four time limit the credit can be taken. 

[yasminmacedo]

Thank you!

Also since this is my first year claiming the American Tax Opportunity Credit and I am a junior is possible to also get the money from the prior two years? If so how can I do that?

[KrisD15]

Yes, that is possible as well, as long as you meet the requirements and have education expenses paid out-of-pocket.

You also need to have not been claimed as a dependent on someone else's tax return. 

If someone else supplies more than half your support, they would claim you and the credit. If they have a tax liability, they might get more credit that you will with no tax liability. 

Getting back to your question, if you already filed for the two previous years, you would file an amended return to claim a credit.

If you never filed, because you didn't need to, you can file for Tax Years 2023 and 2022. 

Something to keep in mind, the credit can be claimed only 4 times. 

The credit can only be claimed when you are in the four years of a degree, but the four years of earning a degree usually spans over five years or more. 

You say you're a Junior now. 

Lets say you claim the American Opportunity Tax Credit for tax year 2024.

You also amend and claim it for tax year 2023.

You go to school all of 2025. .

For tax year 2025 you again claim the AOTC. 

That would be taking the credit three times.

But lets say you don't graduate until May 2026. You could again claim the credit as the fourth time for tax year 2026. 

So before you claim it for 2022, decide if you are better to wait and claim it for tax year 2026. 

Things to consider is how much expense you'll pay in 2026. The AOTC needs 4,000 expenses to give you the max credit. 

If the school bills in December 2025 for the final classes in 2026, you'd need to pay in January 2026 in order for that payment to be on the 2026 Form 1098-T.

If you plan on working in 2026, the credit will lower your tax liability for the wage income so it would be more valuable to you than taking it for 2022 if you had no taxable income.

You can only take the AOTC four times, but the years you can take it include the year you finally earn the degree, even if that takes you ten years to accomplish that. 

IRS Pub 970 explains more