American Opportunity Tax Credit

[ER_Hopeful]

doing my 2023 tax.
DD went to community college for 3 yrs, will be transferring to state college this fall. I've claimed the AOTC twice already, my understanding is that I can claim a max of 4 times. Her tuition for the cc is only $900 so if I claim the 3rd time for 2023, I'll probably that amount in credit, then I only get one claim left.


Her state college tuition is about $7k, so my thinking is that I should skip the claim this year and claim it in 2024 and 2025 where her tuition will be much higher. is that sound logic, am I missing anything?

 

[cathy63]

Yep, that's exactly what we recommend at my Tax-Aide site when doing taxes for families with college kids. Save two or three of the AOTC years for after they transfer to a 4-year school. You can still take the Lifetime Learning credit this year.