Had a question about the American Opportunity Tax Credit. In 2011 I was 23 years old so when I tried to use it while filling my taxes I was denied, because it stated I need to be 24 to qualify. Was wondering if I could use the stuff I was going to claim in 2011 for the 2012 year. One of the tax people said I could, but I think its iffy. You're very knowledgeable about this stuff so I thought you would know. Thanks
BTW I qualify for the Tax credit....
I live in Texas also..
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okay, here's some American Opportunity Tax Credit info straight from the source:
http://www.irs.gov/uac/American-Opportunity-Tax-Credit
"The American Opportunity Tax Credit modifies the existing Hope Credit for tax years 2009 and 2010 under ARRA. The credit was extended to apply for tax years 2011 and 2012 by the Tax Relief and Job Creation Act of 2010. The new credit makes the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student."
and more from:
http://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers
Q4. How much is the American opportunity tax credit worth?
A. It is a tax credit of up to $2,500 of the cost of tuition, fees and course materials paid during the taxable year. Also, 40% of the credit (up to $1,000) is refundable. This means you can get it even if you owe no tax.
Q8. How is the American opportunity tax credit calculated?
A. Taxpayers will receive a tax credit based on 100 percent of the first $2,000, plus 25 percent of the next $2,000, paid during the taxable year for tuition, fees and course materials.
Q10. Who can claim the American opportunity tax credit?
A. Generally, a taxpayer whose modified adjusted gross income is $80,000 or less ($160,000 or less for joint filers) can claim the credit for the qualified expenses of an eligible student. The credit is reduced if a taxpayer’s modified adjusted gross income exceeds those amounts. A taxpayer whose modified adjusted gross income is greater than $90,000 ($180,000 for joint filers) cannot claim the credit.
actually, there's a lot of great info on that page. if it helps, i was not able to find anything about the 24 year old age requirement that somebody mentioned to you... the best way to deal with that is to go back to the person you heard the information from and ask them for their source references. as you'll notice with the information that i attempt to share, it all comes from government websites.
the other part of your question was could you use expenses from 2011 to claim the credit in 2012. I'm going to lean towards a big NO on that one, other than this one bit that i was able to find:
To be creditable, the expenses paid during a taxable year must relate to: (1) an academic period that begins in the same taxable year; or (2) an academic period that begins in the first three months of the following taxable year. See Publication 970, Tax Benefits for Education.
from:
http://www.irs.gov/uac/American-Opportunity-Tax-Credit:-Questions-and-Answers
Best of luck to you! Let us know how everything works out. The more we all know, the better we'll all be able to do!
