American Opportunity Income Tax Credit Question

by BS
(Reading, PA)

American Opportunity Income Tax Credit

American Opportunity Income Tax Credit

Can I claim my student loan interest that I paid all year under the American Opportunity tax credit form even if I graduated that year?

I didn't get to claim this last year and am still paying on books on my credit card, if that matters...

Comments for American Opportunity Income Tax Credit Question

Average Rating starstarstarstarstar

Click here to add your own comments

Jan 20, 2024
Rating
starstarstarstarstar 		Student Loan Interest After Graduation
by: BB

Yes, you can still claim the student loan interest deduction even if you graduated during the tax year. The American Opportunity Tax Credit (AOTC) and the student loan interest deduction serve different purposes.

The AOTC is for qualified education expenses related to undergraduate studies, while the student loan interest deduction allows you to deduct up to $2,500 of interest paid on qualified student loans.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.

Prepaid Tuition Plan( MET) and The American Opportunity Credit

I realize I cannot claim the American Opportunity credit for qualified expenses paid with EARNINGS from a qualified tuition program under Section 529, but can I claim the credit for the amount that I paid for the contract in 1990?

Comments for Prepaid Tuition Plan( MET) and The American Opportunity Credit

Average Rating starstarstarstarstar

Click here to add your own comments

Jan 20, 2024
Rating
starstarstarstarstar 		Using 529 Plan Funds
by: BB

Yes, you can potentially claim the American Opportunity Credit for qualified expenses paid with funds from a qualified tuition program (Section 529) for the same student.

However, there are specific rules and limitations. The expenses must meet the criteria for the credit, and the funds from the 1990 contract may need to be coordinated with the student's enrollment status and other factors.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.


Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you every month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.

Like Bookkeeping-Basics.net?