American Opportunity Credit

The most frequently asked tax questions related to American Opportunity Credit
Can't find the answer to your question? Ask a tax question.

View All Tax Questions

American Opportunity Credit

American Opportunity Credit - Refundable or Nonrefundable

Asked Tuesday, February 05, 2013 by an anonymous user
40% of the American Opportunity Credit may be refundable and the balance is nonrefundable. None of the Lifetime Learning credit is refundable.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit - Number of courses required

Asked Tuesday, February 05, 2013 by an anonymous user
The student must be enrolled at least half time for atleast one academic period beginning during the year. The tution statement, Form 1098-T will have a checkbox checked if the sudent met the half of time requirement.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit - Qualifying payments

Asked Tuesday, February 05, 2013 by an anonymous user
Payments made in 2016 for academic periods beginning in 2016 or beginning in the first 3 months of 2017 qualify for the 2016 credit.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit - Academic period

Asked Tuesday, February 05, 2013 by an anonymous user
An academic period is any quarter, semester, trimester or any other period of study as resonable determined by an eligible educational institution.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit - claiming the dependent's expenses

Asked Tuesday, February 05, 2013 by an anonymous user
If a student is claimed as a dependent on another person's tax return, all qualifying educational expenses of the student are treated as having been paid by that person.
if a student is not claimed as a dependent on another person's tax return, only the student can claim the credit.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit - Eligible Educational Institution

Asked Tuesday, February 05, 2013 by an anonymous user
An eligible educational institution is generally any Accredited public, nonprofit, or private college, university, vocational school or other postsecondary institution.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity Credit

Asked Thursday, April 05, 2012 by an anonymous user
A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify.
The phase out for married taxpayers is Adjusted Gross Income between $160,000- $180,000.
The phase out is between $80,000 and $90,000 for single, head of household or qualifying widower(s) filing status taxpayers.
Married filing separately status are not allowed a American Opportunity credit.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

College Tuition and Room & Board

Asked Thursday, January 19, 2012 by an anonymous user
Qualified educational expenses would include tuition and required fees, but would not include room and board, insurance, transportation or other personal living or family expenses, medical expenses, supplies or equipment.
The credits are subject to income limitations. The credits are not available for married filing separate returns. Both credits are claimed on IRS Form 8863.
The American Opportunity and Lifetime Learning credits are two federal credits available for qualifying higher education expenses paid to eligible educational institutions.
There may also be similar state credits or deductions available. Generally, the American Opportunity credit is available for the qualified expenses for the first 4 years of post-secondary education leading to a degree.
The Lifetime Learning credit is available for both degree and non-degree courses. This includes undergraduate courses not claimed as a American Opportunity credit, graduate studies, and students acquiring or improving their job skills.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity and Lifetime Learning - Claiming both in the same year

Asked Thursday, January 19, 2012 by an anonymous user
You cannot claim the Lifetime Learning Credit and the American Opportunity credit in the same year. You may claim each of the credits for a different student in your family.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory

American Opportunity Credit

American Opportunity credit - Carry forward ?

Asked Thursday, January 19, 2012 by an anonymous user
Any unused American Opportunity credit cannot be carried forward to future years.
The phase out for married taxpayers is Adjusted Gross Income between $160,000- $180,000.
The phase out is between $80,000 and $90,000 for single, head of household or qualifying widower(s) filing status taxpayers.
Married filing separately status are not allowed a American Opportunity credit.
Tax Question Answered By CPAdirectory
Answer Provided by: CPAdirectory