American Opportunity Credit Case Study

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claimed for an eligible student for four years of higher education. To be eligible for the American Opportunity Credit, a student must not have completed four years of college, enrolled in at least one academic school year, and maintains at least half-time status. Drug convictions are not eligible for the credit. An eligible person can claim the AOTC if they pay qualified education expenses or pay the education expenses for an eligible student. The student must be yourself, spouse, or dependent for whom you claim an exemption on your tax return. As an example,
Bob was eligible for the AOTC for 2011, 2012, 2013, and 2015. His parents claimed the credit on their tax return in 2011, 2012, and 2013. No one claimed an American opportunity credit for Wilbert for any other tax year. The American opportunity credit has been claimed for Wilbert for only 3 tax years before 2015. Therefore, Wilbert meets the second requirement to be eligible for the American opportunity credit. If Wilbert were to file Form 8863 for 2015, he would check no on the tax return document. …show more content…

This would need to be discussed with a financial planner or tax accountant. To take the credit, the taxpayer must not have the following: married filing separately, claimed on another taxpayer’s return, MAGI is 90,000 or more (180,000 or more for married filing jointly), does not have a SSN, and is a nonresident alien. The qualified expenses include Tuition, books, supplies, and equipment. Non-qualified expenses include room and board, insurance, medical expenses, and transportation. The amount of the credit that can be taken within a year is as

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