American Opportunity Tax Credit - First 4 years question

[POA 178]

Tax time is almost here and found this tax credit.

My husband started college but intermittent, 2007-2009, 2010-2012, now 2015-present. He never used this tax credit ever since he didn't have any income.

The American Opportunity Tax Credit says "American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you."

My husband has never used this tax credit before, does the 4 years count start from the first year he uses it or from the first year he started higher education?

I know the other kind of tax credit but I feel like this is the one that we can get more. lol.

Hope those who has experience with this can shed some light.

[TBoneTX 45,328]

*** Thread moved from Off Topic forum to the Tax & Finances forum, to be among similar-themed topics. ***

[Nich-Nick 3,354]

Tax time is almost here and found this tax credit.

My husband started college but intermittent, 2007-2009, 2010-2012, now 2015-present. He never used this tax credit ever since he didn't have any income.

The American Opportunity Tax Credit says "American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you."

My husband has never used this tax credit before, does the 4 years count start from the first year he uses it or from the first year he started higher education?

I know the other kind of tax credit but I feel like this is the one that we can get more. lol.

Hope those who has experience with this can shed some light.

IRS says about filing past due returns:

Claim a refund

You risk losing your refund if you don't file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

So most of those years are too long ago. Tuition/expenses paid in tax year 2012...the return was due April 2013, so he has until April 2016 to file for that credit.

2012 Instructions which should clarify if he qualifies.https://www.irs.gov/pub/irs-prior/i8863--2012.pdf

[POA 178]

IRS says about filing past due returns:

Claim a refund

You risk losing your refund if you don't file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

So most of those years are too long ago. Tuition/expenses paid in tax year 2012...the return was due April 2013, so he has until April 2016 to file for that credit.

2012 Instructions which should clarify if he qualifies.https://www.irs.gov/pub/irs-prior/i8863--2012.pdf

Hi Nich-Nick!

Thank you for the info. We have already checked if he qualifies and so far, it does look like he qualifies for both credits. We are actually trying to claim the tax credit for only the 2015 tax year and not for the previous years.

[Nich-Nick 3,354]

Hi Nich-Nick!

Thank you for the info. We have already checked if he qualifies and so far, it does look like he qualifies for both credits. We are actually trying to claim the tax credit for only the 2015 tax year and not for the previous years.

I think it is basically for undergrad toward a degree and you can only take it for four years. If it takes longer to finish, you don't get to claim it anymore. You could do 2012,. You can find 2012 forms and instructions on the IRS website. See how it works out

[POA 178]

I think it is basically for undergrad toward a degree and you can only take it for four years. If it takes longer to finish, you don't get to claim it anymore. You could do 2012,. You can find 2012 forms and instructions on the IRS website. See how it works out

Thanks Nich-Nick. The claiming of 2012 sounds complicated. He doesn't have his 1098-T too for that year and he is in a different school now.

[IcezMan_IcezLady 582]

Thanks Nich-Nick. The claiming of 2012 sounds complicated. He doesn't have his 1098-T too for that year and he is in a different school now.

Can't he request that from the school?

Unless he has four more years to finish his under-grad then you can ignore the past and start using it from this year.

[POA 178]

Hi,

Thanks for your response. Actually, we really are not worried about the last years. We are just wanting to claim that credit this year and the following years. I think I found the answer. As long as he didn't finish 4 years( completed freshman, sophomore, junior ans senior) he is qualified to claim the credit for 4 years.