Education credit - high school students

[JenMO]

Does the tuition for a college course taken by a high school student qualify for the lifetime learning credit?

[Burke]

No it does not.

[travis bickle]

It would probably

Does the tuition for a college course taken by a high school student qualify for the lifetime learning credit?

qualify for the AOC.

There is nothing in the code that says a college student must have graduated from high school before they can obtain an education credit/tuition & fees deduction.

A number of high school seniors take Advanced Placement classes and are enrolled at their college, ostensibly, as a freshman.

If the college bursar issues a 1098T, why would you not give the client an education credit?

[ChEAr$]

qualify for the AOC.

There is nothing in the code that says a college student must have graduated from high school before they can obtain an education credit/tuition & fees deduction.

A number of high school seniors take Advanced Placement classes and are enrolled at their college, ostensibly, as a freshman.

If the college bursar issues a 1098T, why would you not give the client an education credit?

Check IRS publication 970. A student must be enrolled in a degree program, and most
colleges and universities do not accord high school students that privilege.

[Larmil]

Because -

qualify for the AOC.

There is nothing in the code that says a college student must have graduated from high school before they can obtain an education credit/tuition & fees deduction.

A number of high school seniors take Advanced Placement classes and are enrolled at their college, ostensibly, as a freshman.

If the college bursar issues a 1098T, why would you not give the client an education credit?

I don't believe the 1098T's.

[rjholmes]

According to publication 970, a student does not have to be pursuing a degree for the lifetime learning credit. Also the only time (at least that I can find) that it disallows a high school student is for the tuition and fees deduction. The student must have a diploma or GED to qualify for the deduction.

[dyne]

IRS. gov says to qualify for the Lifetime Education Credit the student must obtain
the education AT "any eligible college, university, vocational school or postsecondary
educational institution..." That appears to NOT allow a credit for a class before graduating
from high school EXCEPT where the courses were obtained at a college, etc.

[LCP]

I don't know about you all but I prefer to think that a government employee chose to use a two-letter word because he could spell it rather than for the literal meaning.

[Kram BergGold]

Definative Answer

Your question was just posted by the NATP. Here is the answer.

"As long as Jenny is enrolled in a degree (or certificate, etc.) program, is a half-time student, is within the required year of study, and has no felony drug convictions, she is an eligible student [Reg. §1.25A-3(d)(1)]. A high school student taking college level courses typically is not considered an eligible student for the education credits if the institution requires a high school degree or equivalent to be enrolled in a program leading toward a post-secondary degree, certificate, or other recognized postsecondary educational credential. See page 13 of Pub 970, example 3 and Reg. §1.25A-3(d)(2), example 5. If the educational institution allows enrollment in a degree or certificate program without requiring a high school diploma or equivalent, and Jenny is enrolled in a degree (or certificate) program, then other factors must be weighed as to whether her parents benefit greater from the American Opportunity Tax Credit, Hope Credit, or the Lifetime Learning Credit (i.e., the parents adjusted gross income, whether Jenny's school is in a Midwestern Disaster Area, etc.)"

[Black Bart]

Hmm,

Different answers all over the place -- looks like every opinion/scholar for it/himself. I've got a client now says he spent $600 for his kid's senior high course -- has check but no 1098-T and...what to do? Guess I'll just have to decide how bad I want to keep him.

About AOC -- I don't understand all I don't know about that credit. I've kind of gotten used to doing Hope for the first two years and then switching jr/sr students to Lifetime. Can AOC be used anytime by any year student plus those out of college too?

[dtlee]

I am not sure that this answer is "definitive" but it is a very good start.

First of all, I have not found anything to support the notion that a student must be enrolled in a degree program at the time that the courses are taken. Thus, a student who takes courses over the summer at a college to improve math or verbal skills prior to enrollment in a degree program in the fall, should be able to claim that summer course for the AOC or Hope Credit. Similarly, I would think that courses in the final high school spring semester that are taken via (not necessarily physically "AT" as Dyne emphasized) an accredited college might also apply for those two credits. Many colleges allow such courses to be taught AT the high school (I am not talking about AP classes) using the college syllabus and sometimes the college instructors.

Secondly, the rules in the quote appear to be for the Hope and AOC credits. Drug felons are welcome to claim the Lifetime Learning Credit. Likewise the page 13 reference is not for the Lifetime Learning Credit.

Without having read the question they were answering, it looks like they are giving an example of a situation where a student has achieved eligibility for the AOC and Hope credits in addition to having already been eligible for the Lifetime Learning Credit.

Not saying that you or they are wrong, just that it does not appear to be focused on the Lifetime Learning Credit.

[AJsTax]

AOC is limited

to those that have not finished the first four years of college credit. So once the person goes on to graduate or continuing classes the AOC is out and LTLC takes over, or fees and tuition.
Just as an example, last year my son took post secondary classes. He actually attended the classes at the college facility and was a mixed class with other college students. That is the way it is done here. Two different colleges offer that to our kids. There is a 1098-T (which by the way it the ONLY thing we require to prove attendance at school) sent by the college and the classes count towards their college degree requirements. If the hours are enough they can qualify for greater than half time status. For us it is free college credits. Paid by the school 100%, even the books. So there was no credit to take for us. But the main point is that the classes most definitely qualify as college credit classes.

[dyne]

I believe that I was wrong in my earlier post about a student must attend college, etc.
to qualify for the lifetime credit. In checking further it appears that postsecondary education
or courses to acquire or improve job skills qualify.
Instead of saying AT colleges, perhaps I should have said ATTENDING college, etc.
To make it simpler if the education expense was paid to the high school it would NOT
qualify for any credit.

[dtlee]

My comment was taken from the IRS.Gov section which referred strickly to the Lifetime Credit. Instead of saying AT colleges, perhaps I should have said ATTENDING college, etc.
To make it simpler if the education expense was paid to the high school it would NOT
qualify for any credit.

Dyne,

I like that. I think that is a very excellent distinction.

[taxea]

See charts on TTB pg 12-1 and 12-2
might qualify under a 529 or similar plan...depending on how it is written