Looking for a Form 8862 Templates? Download it for free!

Part IV—American Opportunity Tax

Although the child is a qualifying child of each of these persons, only

one person can actually treat the child as a qualifying child to take

Credit

the EIC, CTC/ACTC, or AOTC (provided the person is eligible for the

credit).

Line 20a. An eligible student for purposes of the AOTC is a student

To determine which person can treat the child as a qualifying

for whom you pay qualified education expenses and meets all of the

child to claim any of these credits, the following tiebreaker rules

following requirements.

apply.

1. The student did not have expenses that were used to figure

If only one of the persons is the child's parent, the child is treated

an AOTC in any 4 earlier tax years. This includes any tax year(s) in

as the qualifying child of the parent.

which the Hope scholarship credit was claimed for the same

If the parents file a joint return together and can claim the child as

student.

a qualifying child, the child is treated as the qualifying child of the

parents.

2. The student had not completed the first 4 years of

post-secondary education (generally, the freshman, sophomore,

If the parents do not file a joint return together but both parents

claim the child as a qualifying child, the IRS will treat the child as the

junior, and senior years of college) before the year on line 1.

qualifying child of the parent with whom the child lived for the longer

3. For at least one academic period beginning in the year on

period of time during the year. If the child lived with each parent for

line 1 (or the first 3 months of the following year if the qualified

the same amount of time, the IRS will treat the child as the qualifying

expenses were paid in the previous year), the student was enrolled

child of the parent who had the higher adjusted gross income (AGI)

at least half-time in a program leading to a degree, certificate, or

for the year.

other recognized educational credential.

If no parent can claim the child as a qualifying child, the child is

4. The student has not been convicted of any federal or state

treated as the qualifying child of the person who had the highest AGI

felony for possessing or distributing a controlled substance as of the

for the year.

end of the year on line 1.

If a parent can claim the child as a qualifying child but no parent

does so claim the child, the child is treated as the qualifying child of

See Pub. 970 and the Instructions for Form 8863 for more

the person who had the highest AGI for the year, but only if that

information.

person's AGI is higher than the highest AGI of any of the child's

Line 20b. For tax years beginning after June 29, 2015, the law

parents who can claim the child. If the child's parents file a joint

requires a taxpayer (or a dependent) to have received a Form

return with each other, this rule can be applied by dividing the

1098-T from an eligible educational institution in order to claim the

parents' combined AGI equally between the parents.

AOTC.

Subject to these tiebreaker rules, you and the other person may

However, a taxpayer may claim the AOTC if the student does not

be able to choose which of you claims the child as a qualifying child.

receive a Form 1098-T and the student’s educational institution is

For more information on this and other rules that may apply, see

not required to send a Form 1098-T to the student under existing

your tax return instructions and Pub. 501.

rules (for example, if the student is a nonresident alien, has qualified

education expenses paid entirely with scholarships, or has qualified

Paperwork Reduction Act Notice. We ask for you to obtain the

education expenses paid under a formal billing arrangement), or

information on this form to carry out the Internal Revenue laws of the

because the student is enrolled in courses for which no academic

United States. You are required to obtain this information.

credit is awarded. If a student’s educational institution is not required

to provide a Form 1098-T to the student, a taxpayer may claim the

You are not required to obtain the information requested on a

AOTC without a Form 1098-T if the taxpayer otherwise qualifies, can

form that is subject to the Paperwork Reduction Act unless the form

demonstrate that the taxpayer (or a dependent) was enrolled at an

displays a valid OMB control number. Books or records relating to a

eligible educational institution, and can substantiate the payment of

form or its instructions must be retained as long as their contents

qualified tuition and related expenses. If the student did not receive

may become material in the administration of any Internal Revenue

a Form 1098-T because the educational institution was not required

law. Generally, tax returns and return information are confidential, as

to send one, and you can otherwise claim the AOTC, answer "Yes"

required by Internal Revenue Code section 6103.

to question 20b for that student.

The average time and expenses required to complete and file

Line 20c. If the AOTC has been claimed for a student for any 4 tax

this form will vary depending on individual circumstances. For the

years before the year on line 1 (including any year for which the

estimated averages, see the instructions for your income tax return.

Hope scholarship credit was claimed for the student), the AOTC

If you have comments concerning the accuracy of these time

cannot be claimed for this student for the year on line 1.

estimates or suggestions for making this form simpler, we would be

Part V—Qualifying Child of More Than

happy to hear from you. See the instructions for the tax return with

which this form is filed.

One Person

A child may meet the relationship, age, residency, support, and joint

return tests to be a qualifying child of more than one person.

-3-

Instructions For Form 8862 - Information To Claim Earned Income Credit After Disallowance Page 3

Related Articles

Related forms

Related Categories