American Opportunity Tax Credit

<p>Hi everyone,</p>

<p>I'm a second-year undergrad at UCLA and have a question about tax credits. So, last year (2011) my mom claimed the $2500 American Opportunity Tax Credit for me (I was listed as a dependent). This year, however, in the instructions for Form 8863, it states that in order to qualify, the following must hold "Neither the American opportunity credit nor the Hope Scholarship credit has been claimed (by you or anyone else) for this student for any four prior tax years." This makes it seem like you can only claim this credit once in your four years of school. Since my mom claimed the credit in 2011, does this mean she can't claim it for me again this year? If the answer is yes, can she still claim the Lifetime Learning Credit for me? </p>

<p>Another question, if she did not list me as her dependent, would I be able to claim the American Opportunity credit myself?</p>

<p>And one last question... my sister is a freshman in college also this year, so I'm assuming my mom can claim the American Opportunity Credit for her as she did for me last year. Am I correct in assuming that she can claim two credits for 2012, one for each of us?</p>

<p>Thanks in advance! Taxes are tricky...</p>

<p>What it means is that if the AOC has already been claimed 4 times for the same student, it cannot be claimed again (or any combination of Hope and AOC equal to 4 total). So, yes, your mother can claim you again. She can claim your sister also for 2012. As for your other question, you need to do a bit of reading on tax law as I am not sure about that. In most instances, it is advantageous for the parent to take the credit because the parent’s tax liability is higher. A student would have to have a fairly high income to take full advantage of the AOC since part of the AOC is not refundable ie if the student’s tax liability is zero, he/she would not receive the entire $2500 refund of AOC.</p>

<p>If your mother can legally claim you on her tax return, you cannot legally claim your own personal exemption (you still get your standard deduction). You also cannot claim the American Opportunity Credit - she needs to claim you and the credit.</p>

<p>Hoosiermom is correct about the 4 years. If it has been claimed by or for you in any 4 years (4 times total), you are not eligible.Thus if you entered college in the fall of 2011 you would most likely claim it for 2011, 2012, 2013, and 2014 tax returns. You would graduate in 2015, and eligible to claim the credit except for having claimed in 4 times already (unless you chose not to claim it in 2011 because of minimal qualifying expenses).</p>

<p>I did not claim any college deductions for my child’s freshman year (Fall 2008). Will I receive a 1098 form (believe that’s the correct number for the one indicating tuition and costs paid) for 2012 which was the last semester of their senior year?</p>

<p>^^ Yes, the school should provide the 1098.</p>

<p>Do you mean the student graduated in the spring? Yes, you should get a 1098T. However, many schools have the 1098T on the student portal, which the student no longer has access to, and don’t mail them. Were they mailed in the past? If you don’t get one, I would email the school’s bursar/business office and ask about it. Will you still be able to claim your child as a dependent for 2012?</p>

<p>Great, thanks for the responses! This was helpful! I appreciate your kindness.</p>

so how many years are we allowed to claim the american oppertunity act on your taxes one of every years in that 4 years period