What this notice is about You claimed the American Opportunity Tax Credit (AOTC) on Form 8863 of your 2023 Form 1040 tax return. Our records show you already claimed this credit for four tax years for the same student. The credit is available for only four tax years per student. This notice has been sent to inform you of this discrepancy and to help you verify if you claimed this credit correctly. You may want to Review your 2023 Form 1040 (Form 8863, Part I) federal tax return and common errors to make sure you correctly claimed the AOTC. If you claimed this credit in error: File an amended return. If you filed electronically, you may file your amended return electronically. You can get help at an IRS Taxpayer Assistance Center. Don’t claim the credit on future returns for the same student. Share this letter with anyone helping you with preparing your returns. If you file an amended federal tax return, you may also need to file an amended state or local tax return. Failure to review and address any incorrect information could result in additional communication from the IRS. Frequently asked questions What is the American Opportunity Tax Credit? (added Oct. 15, 2024) A credit for qualified education expenses paid for an eligible student for the first four years of higher education. Who is eligible for the American Opportunity Tax Credit? (added Oct. 15, 2024) An eligible student must meet at least the following: Not have claimed the AOTC or the former Hope credit for more than four tax years. Be pursuing a degree or other recognized education credential. Be enrolled at least half time for at least one academic period beginning in the tax year. Not have finished the first four years of higher education at the beginning of the tax year. Not have a felony drug conviction at the end of the tax year. The amount that you can claim may change based on your modified adjusted gross income (MAGI). To claim the full credit, your MAGI must be $80,000 or less ($160,000 or less for married filing jointly). You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly). You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers). Visit Interactive Tax Assistant: Am I eligible to claim an education credit?, for more information. What is the difference between academic years and tax years? (added Oct. 15, 2024) Regardless of a student’s academic year, you may only claim the AOTC for up to four tax years. Schools set the academic year. Examples of academic years include semesters, trimesters, and quarters. Academic years may be different than tax years, and this is important for properly claiming the AOTC. A tax year is an annual accounting period for keeping records and reporting income and expenses. This is often a calendar year – 12 consecutive months beginning Jan. 1 and ending Dec. 31. Ensure you review how your school reports their academic year on your Form 1098-T. See the table below for an example of Academic and Filing Years or for more examples visit chapter 2, Publication 970 PDF. Table 1. Examples of academic years, academic periods, and filing tax years Academic year Academic periods (example: semesters) Filing tax year* (Jan. 1 – Dec. 31) 2023–2024 Fall semester 2023 2023 2023–2024 Spring semester 2024 2024 2024–2025 Fall semester 2024 2024 2024–2025 Spring semester 2025 2025 * Your Form 1098-T, provided by your school, should reflect the academic periods within a given tax year. My student doesn’t qualify for the AOTC. Are there any other education credits I can claim? (added Oct. 15, 2024) If you or your dependent doesn’t qualify for the AOTC, you or your dependent may qualify for the Lifetime Learning Credit (LLC). This credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate, and professional degree courses — including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return. Helpful information Follow the links below to read more about topics related to the AOTC and education expenses. About Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) What is an eligible educational institution? Qualified education expenses Taxpayer Advocate Service: Education credits Follow the links below to read more about filing an amended return. Form 1040-X Frequently asked questions IRSvideos: Amending a return Make a payment Get help with tax debt Pop quiz! Do you qualify for an education tax credit? Transcript How to pay your taxes Transcript