The American Opportunity Credit (AOC) allows eligible taxpayers to claim up to $4,000 in qualified education expenses. Follow these steps to claim the credit:
1. Access the Federal Information Section
From the left-hand side menu, select Federal Information.
Navigate to Credits and select Form 8863.
2. Adding Educational Expenses
Step 1: Scroll to Part III
Before completing Parts I and II, scroll down to Part III on Form 8863.
Click Add to access Part III.
Step 2: Add the Student Name
Select the student’s name from the dropdown menu on Line 20.
Reminder: The student must be listed under the taxpayer’s information for their name to appear in the dropdown.
Step 3: Answer the Eligibility Questions
Respond to the questions to ensure the student meets the qualification requirements.
Step 4: Report Education Expenses
Enter the qualified education expenses on Line 27.
Note: This section is based on Form 1098-T (Tuition Statement).
3. Important Notes
The maximum amount a taxpayer can claim for the American Opportunity Credit is $4,000, as per IRS guidelines.
Let us know if you need further assistance!