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American Opportunity Credit


Christian

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A client couple has a son in the eleventh year in high school. He is taking one or two college level courses while in high school and has received a Form 1098-T showing the tuition paid by his parents along with box 8 of the form being checked. Can they get the AOC for this. I have reviewed the instructions and cannot find a restriction that keeps them from doing so but it is possible I have missed a disqualifying reg somewhere. If not this maybe the Lifetime Learning Credit ?

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Student has to be a degree candidate, and since he hasn't graduated high school yet that would knock him out. No?

Even if qualifying, AOC can only be claimed for 4 years. Maybe the parents don't want to claim in a year where the credit would be small.

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To claim the LLC, you must meet all three of the following:

You, your dependent or a third party pay qualified education expenses for higher education.

You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution.

The eligible student is yourself, your spouse or a dependent you listed on your tax return

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I think he qualifies for the LLC even though he is still in high school. These courses are from a local community college and he has the relevant 1098-T from the community college. Of course he is taking them online and the courses are given by a professor at the college who is at the college giving the courses.

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Christian, you may be correct.

With the AOC, the student must be a degree candidate, and he can't be a candidate for a degree without graduating from HS. Most colleges and universities will not even enroll the student in the degree program without first completing the secondary education.

The LLC, on the other hand, can be taken by an eligible student taking course(s) that are part of a degree program, but it does not require that the student be a degree candidate.

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27 minutes ago, Slippery Pencil said:

Sure he can.  I know plenty of kids who graduated w/ an Associates Degree from the local community college the same time they graduated HS.

Thanks. That's good to know, and so it would be up to Christian to find out the specifics for this student.

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