Question: Who can claim the American opportunity tax credit, the expansion of the Hope Scholarship credit?
The American opportunity tax credit modifies the Hope Scholarship credit for any tax years beginning in 2009, 2010, 2011, or 2012. The maximum amount of the credit is $2,500.00 and 40% of the Hope credit is refundable (up to $1,000).
You may claim the Hope Scholarship credit if all of the following requirements are met:
- You pay qualified tuition and related expenses (see the definition below) for the first 4 years of postsecondary education.
- The qualified tuition and related expenses are for an eligible student (see the definition below).
- You must state the name and taxpayer identification number of an eligible student on the return.
- Your modified adjusted gross income is below a certain dollar limitation.
- You are not listed as a dependent in the exemption section of another person's tax return (such as your parents').
- If you are married, your filing status is married filing jointly.
- You do not claim the lifetime learning credit for the same student in the same year.
- If you (or your spouse) are a nonresident alien for any part of the tax year, the nonresident alien elects to be treated as a resident alien for tax purposes. (For additional information, refer to Publication 519, U.S. Tax Guide for Aliens).
In general, qualified tuition and related expenses means tuition, fees, and course materials required for the enrollment or attendance of you, your spouse, or your dependent with respect to whom you are allowed a deduction, at an eligible educational institution.
To be an eligible student, generally, the student must:
- Have been enrolled in a program that leads to a degree, certificate, or other recognized educational credential for at least one academic period beginning in the tax year.
- Carry at least half the normal full-time workload for the course of study.
- Not have made an election to claim the Hope Scholarship credit for any 4 earlier tax years.
- Not have completed the first 4 years of postsecondary education before this tax year.
- Must have been free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year.
- Publication 970, Tax Benefits for Education
- Form 8863 (PDF), Education Credits (American Opportunity and Lifetime Learning Credits)
Category: Child Care Credit, Other Credits
Subcategory: Education Credits