American Opportunity Tax Credit

[harrypotter]

I just searched Google, and it says that you can't claim a tax credit for anything you didn't pay.  So if your tuition is $5000, but you get a Pell grant for $4000, then you could claim $1000.  If your tuition is less than the Pell grant, then you can't claim the tax credit.

That's my understanding, but just search for "can I claim a tax credit if I get a Pell grant?"

Not everyone who's eligible for financial aid gets a pell grant.. in this case i'm expecting no pell grant & just wondering if it's possible with a federal student loan.

[jsd]

in general, asking for tax advice from anyone who isn't your paid tax professional is going to result in some bad results.

[harrypotter]

in general, asking for tax advice from anyone who isn't your paid tax professional is going to result in some bad results.

I'm just surprised no one on the forum has any experience with this.. the eligibility requirements for this credit are not hard to meet...

[BrianFallon]

worked since 2006 at the agency administering that code. You can't get "two bites at the apple" If you use non-taxable Pell Grant to pay for tuition, you can't claim a tax credit for the same expense.

From the IRS website: http://www.irs.gov search for the Interactive Tax Law Assistant. You go through a series of questions and it gives you a printable answer.

Look for this caution:
Caution: You cannot claim a credit for expenses paid with tax free educational assistance. Educational assistance (including scholarships, fellowships, Pell Grants, and Veterans’ educational assistance) applied to qualified education expenses (such as tuition and required fees) is tax free and reduces the amount of qualified education expenses in computing the education credit.