American opportunity credit - two schools, less than half time each, over half time if combined.

Paying for College
1

I realize the requirements state box 8 on form 1098-T must be checked to indicate half time status. However, I took six classes in 2014, two each semester, one at a four year college, one at a community college. I took the classes at the community college to transfer the credits over to the four year because tuition is a quarter of the cost. Because of this I am not considered half time with either school, but combined I would be. Is there any way I can still claim the credit? It seems silly that I can’t claim the credit just because I took the classes in the way I did.

2

I need more information. Here are my questions:

  1. How many credits were each class?
  2. How many credits are considered full-time enrollment (or half-time enrollment) at each school?
  3. What are the exact time periods you took the 6 classes and at which schools?
  4. The most confusing part is the second sentence - I can't figure out what you mean - 'two each semester' would appear to add up to four classes, but what does one at a four year and one at a community college mean? One what? Semester? Class?
  5. Do your parents claim you as a dependent on their tax return (and take the tax credit)?
  6. If not (i.e., if you claim yourself on 1040), do you provide over one-half of your own support through earned income? 7.What is the first year and for how many years have you or your parents claimed the AOTC? List the calendar years AOTC has been claimed.
3

Hi, thanks for the quick response, sorry if it is a little confusing.

  1. Community college, 3 classes, 3 credits each. Four year college, 3 classes, 4 credits each.
  2. 12 credits in a semester is considered full time for each school.
  3. I do not have the exact times right now, I will need to look them up.
  4. I took one class each semester at the community college (Winter, Summer, Fall), and one class each semester at the four year college (Winter, Summer, Fall).
  5. I am not claimed as a dependent on anyone's tax return.
  6. I provide all of my own support.
  7. AOTC has never been claimed.

Thanks again.

4

OP,
I don’t think the combination of two schools would work for AOTC. See http://www.irs.gov/publications/p970/ch02.html Figure 2.2

You would have to say “No”

5

New question for you - is full-time in summer also considered 12 credits? Or is it 6 or 8?

I am asking this because full-time in summer at some schools is 6 credits.

The IRS rules on the AOTC talk about eligibility to claim the credit - enrollment at least half-time in at least one academic period. An academic period includes a semester, trimester, quarter, or other period of study such as a summer session.

Thus if full-time during summer at your four-year college is 6 credits and you took a 4-credit class, then you meet the “enrolled at least half time in at least one academic period” requirement.

6

"I don’t think the combination of two schools would work for AOTC. See http://www.irs.gov/publications/p970/ch02.html Figure 2.2

Was the student enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential for at least one academic period beginning during the tax year?

You would have to say “No” "

That is pretty much what I was thinking, but I could not find a definitive answer. I was hoping because the classes for the community college are directly transferring to the four year that there might be some exception out there. With taxes there seem to be many rules and exceptions that are not always listed.

7

"New question for you - is full-time in summer also considered 12 credits? Or is it 6 or 8?

I am asking this because full-time in summer at some schools is 6 credits.

The IRS rules on the AOTC talk about eligibility to claim the credit - enrollment at least half-time in at least one academic period. An academic period includes a semester, trimester, quarter, or other period of study such as a summer session.

Thus if full-time during summer at your four-year college is 6 credits and you took a 4-credit class, then you meet the “enrolled at least half time in at least one academic period” requirement."

I would have to check on that. Thanks.

8

I randomly googled a few schools and 6 credits for summer was considered full-time. Let us know what you find out about your 4-year college.

If all else fails, there is always the Lifetime Learning Credit, which has fewer restrictions (but is less generous).

9

OP, talk to a tax expert. You may have a good argument.

Ask your schools for the enrollment verification. The verification will tell you your status at the schools.

10

Is an enrollment verification broken down by academic period?

11

^Yes. At least my kids’ schools do that (by academic period.)

12

You can only claim the AOTC in four tax years. Look at your academic plan, and see how it is likely to play out. It may make more sense to just wait and use the credit in a future tax year in which you know you will be enrolled at least half time for a full semester.