Avoid common AOTC errors

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These tips will help avoid common AOTC errors

Use caution to ensure you do not:

Claim a credit for a student that did not attend a college, university or vocational school

  • AOTC is for post-secondary education only that includes colleges, universities, and vocational schools. It includes all post-secondary educational institutions that are eligible to participate in a student aid program run by the Department of Education. Not all eligible schools participate in the financial aid program. If not listed, the school can answer if it is eligible to participate.
  • The eligible student must have attended at least half time for an academic period. The school determines full time status and the length of an academic period. If the student does not have a Form 1098-T PDF, ask questions to determine how long the student attended, number of courses and what the school considers full time. Ask enough questions until you feel comfortable the student qualifies and let your clients know that if the IRS audits them, they need to have documents supporting their claim. See the Form 866-H-AOC PDF and Form 866-H-AOTC-MAX PDF for examples of the documentation needed. Form 886-H-AOC (SP) PDF is also available in Spanish.

Claim a credit for eligible education expenses not paid or not considered as paid

  • See the Compare education credits chart for information on who is a qualifying student and for expenses paid or considered paid by your client for purposes of the AOTC.
  • Remember, no double benefits allowed. Ask how the expenses were paid: was it from a non-taxable grant or scholarship, a qualified tuition plan, etc.

Claim a credit for unqualified expenses

  • See what are Qualified education expenses for more information on what qualifies and what does not qualify as expenses for education benefits.

Claim a credit for an eligible student for more than 4 years

Use the Interactive Tax Assistant to see if you’re eligible to claim an education credit.

Resources

Education credits

Useful forms and publications

Education credit marketing materials

Tax tips

Tax preparation assistance

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