You Make the Call - March 25, 2025

Question: Victoria and Francisco have one son, Carlos, who is 18 and started his first year in college last fall. They provide over 50% of his support and will claim him as a dependent on their 2024 income tax return. They have never claimed education credits before and meet all the requirements to claim the American opportunity tax credit (AOTC) (e.g., have not been convicted of any felony drug offense, income requirements, etc.). Although Carlos received a partial scholarship to pursue an undergraduate degree in medicine, he still had eligible tuition expenses that his parents paid. Carlos attends school full-time and does not work. Can Victoria and Francisco claim the AOTC?

Answer: Yes, Victoria and Francisco can claim the AOTC. Carlos is in his first year of college, they have never claimed the AOTC for him before and they meet all the other requirements. The maximum credit is up to $2,500.