Claimed American Opportunity Credit 2015,2016,5017,2018 but has not graduated

[cipparulo12345]

Claimed American Opportunity Credit 2015,2016,2017,2018. Student has not graduated - still an undergraduate. Can she take the American Opportunity Credit for 2019?

[EvenKeelTax]

No more AOTC for this person, 4 year limit. Tax book page 12-4. Look at one of the two other credits, most likely Lifetime Learning credit if there is a tax liability at all for the student.

[cipparulo12345]

Thanks. I wanted to make sure. At the IRS site is says "if not claimed for more than 4 years" their wording is confusing.

[kathyc2]

If the 2019 credit is more than any of the other years it was claimed, you could always amend the lowest year to not claim it and therefore having a year of eligibility for 2019.

[ATSMAN]

This is a good situation to show why planning is necessary.

A lot of my clients will send their children to a community college the first year to take thos mandatory English and History courses that you need to graduate. The average Tuition runs between $2000 to $5000. Then they transfer to a 4 year college and pay the big bucks. I always tell them to save the AOC credits for the big bucks, and take the LLC credit for other years. Generally speaking the first and last year are the ones to watch out.

[Gene V]

This is a good situation to show why planning is necessary.

A lot of my clients will send their children to a community college the first year to take thos mandatory English and History courses that you need to graduate. The average Tuition runs between $2000 to $5000. Then they transfer to a 4 year college and pay the big bucks. I always tell them to save the AOC credits for the big bucks, and take the LLC credit for other years. Generally speaking the first and last year are the ones to watch out.

ATSMAN,

I've done that couple times years back, however, since the maximum tuition is $4,000 to get

the full credit of $2,500, any tuition over the $4,000 doesn't give you any additional credit.