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What this notice is about
We’re sending this notice because our records show you may be eligible to claim the American Opportunity Tax Credit (AOTC) and/or the Lifetime Learning Credit (LLC) for tax year 2023 for one or more eligible students listed on your tax return.
What you need to do
- Read your CP330 notice carefully.
- Determine eligibility:
- To be eligible for AOTC, the student must at least meet the following requirements, but additional requirements may apply:
- Be pursuing a degree or other recognized education credential in a post-secondary educational institution eligible to participate in a US Department of Education student aid program.
- Be enrolled at least half-time for at least 1 academic period beginning in the tax year.
- Not have finished the first 4 years of higher education at the beginning of the tax year.
- Not have claimed AOTC or the former Hope Credit for more than 4 tax years. The student does not have to claim the AOTC in consecutive years, but the Hope credit should be included for the same student, if claimed.
- Not have a felony drug conviction at the end of the tax year.
- To be eligible for LLC, the student must at least meet the following requirements, but additional requirements may apply:
- Be taking higher education course or courses as part of a post-secondary degree program or taken by the student to acquire or improve job skills.
- Be enrolled for at least one academic period beginning in the tax year.
- Be enrolled in one or more courses at an eligible educational institution.
- Use the Interactive Tax Assistant to check your eligibility.
- If you are eligible for either credit, file a 1040X, Amended U.S. Individual Income Tax Return. Be sure to complete and include Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). You may also need to file a corrected state or local tax return.
- To be eligible for AOTC, the student must at least meet the following requirements, but additional requirements may apply:
Frequently asked questions
Unlike other education tax credits, AOTC is allowed for expenses for course-related books, supplies and equipment that aren’t necessarily paid to the educational institution but are needed for attendance. It also differs because you can claim the credit for 4 tax years instead of no limit on the number of years you can claim LLC.
To claim AOTC or LLC, use Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). If you claim AOTC, the law requires you to include the school’s Employer Identification Number on the form.
To claim AOTC, complete Form 8863 and submit it with your Form 1040 or 1040-SR. Enter the nonrefundable part of the credit on Schedule 3 (Form 1040 or 1040-SR), Line 3. Enter the refundable part of the credit on Form 1040 or 1040-SR, Line 29.
To claim LLC, complete Form 8863 and submit it with your Form 1040 or 1040-SR. Enter the credit on Schedule 3 (Form 1040 or 1040-SR), Line 3.
Helpful information
- Publication 970, Tax Benefits for Education
- Instructions for Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
- Education credits: American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC)
Tips for the next time you file
If you, your spouse or a dependent you listed on your tax return meet eligibility requirements, consider claiming the American Opportunity Credit or the Lifetime Learning Credit the next time your file your Form 1040, U.S. Individual Income Tax Return. To do this, complete and send Form 1040 and Form 8863.
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find applicable credits and deductions. In many cases you can file for free. Learn more about e-file.
Need help?
- You can authorize someone to represent you before the IRS or inspect and/or receive confidential tax information.
- You may be eligible for free help from the Taxpayer Advocate Service (TAS).
- You may qualify for help from a Low Income Taxpayer Clinic.
- If you didn’t receive a letter or notice, use Let us help you.