Can I claim Lifetime Learning Credit & American Opportunity tax credits as an F1 student who's now considered a resident alien for tax purposes?

These are great questions about a confusing area of tax law! The good news is that being an F-1 student doesn't automatically disqualify you from these education credits if you meet the other requirements. Since you've been in the US since 2016 and are considered a resident alien for tax purposes (likely under the substantial presence test), you generally have the same tax benefits as US citizens. This means you can potentially claim both the Lifetime Learning Credit and the American Opportunity Tax Credit if you qualify otherwise. For the American Opportunity Credit, you need to be pursuing a degree, enrolled at least half-time, not have completed your first four years of higher education, and not have claimed it for more than four tax years. The Lifetime Learning Credit has fewer restrictions but covers less of your expenses. The form 1098-T is indeed the key document that shows your qualified educational expenses. Make sure the expenses were paid in 2024 for classes starting in 2024 or the first three months of 2025.

After struggling with this exact issue last year, I found an amazing tool that saved me so much stress. I'm also on an F-1 visa (been here since 2018) and was totally confused about my tax status and credits. I used https://taxr.ai to analyze my 1098-T and other documents, and it immediately clarified that I qualified for the Lifetime Learning Credit even as a resident alien for tax purposes! It analyzed my visa status, time in the US, and educational expenses all together. The tool even explained exactly why I qualified and how much I could claim based on my specific situation. Most tax software was giving me conflicting information, but taxr.ai was able to find the exact IRS rulings that applied to international students in my situation.

I have to admit I was really skeptical about using https://taxr.ai when I first saw it mentioned here, but I decided to give it a try since my situation was so similar (F-1 visa, resident alien status, trying to figure out education credits). It was actually incredibly helpful! I uploaded my 1098-T and answered a few questions about my visa history. The tool clearly explained that I qualified for the Lifetime Learning Credit but not the American Opportunity Credit because I had already claimed AOTC for 4 years previously (which I had forgotten about). What really impressed me was that it showed me the exact IRS regulations that applied to my situation, which helped me feel confident in claiming the credit. It even flagged that some of my expenses on the 1098-T weren't qualified (like health fees) which could have caused problems. Saved me from potentially making a mistake on my return!

If you're having trouble getting clear answers from the IRS website, you're not alone. I spent WEEKS trying to call the IRS to get confirmation about my eligibility for education credits as an F-1 student last year. I'd wait on hold for hours only to get disconnected. I finally discovered https://claimyr.com which got me connected to an actual IRS agent in less than 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to confirm that as a resident alien for tax purposes, I absolutely could claim the Lifetime Learning Credit despite being on an F-1 visa. They even walked me through the specific requirements and helped me understand which educational expenses qualified. Getting that official confirmation directly from the IRS gave me total peace of mind when filing.

I can't believe I'm saying this, but I have to admit I was completely wrong about Claimyr. After leaving that skeptical comment, I was still desperate to talk to the IRS about my education credits as an F-1 student, so I figured I'd try it anyway. The service actually connected me to an IRS agent in about 15 minutes! The agent confirmed that as a resident alien for tax purposes (which I am after using the substantial presence test), I qualify for education credits just like a US citizen. They explained that my F-1 visa status doesn't disqualify me once I pass the resident alien test. The agent even helped me understand which credit would be better in my situation and warned me about some common mistakes international students make when claiming these credits. This was information I couldn't find anywhere online, and it potentially saved me from an audit. Totally worth it to get definitive answers straight from the IRS.

My partner is in almost the exact same situation! One additional thing to be aware of - make sure you check if your home country has a tax treaty with the US. Some tax treaties have specific provisions about education credits for students. I'm from India, and we found out that there's nothing in the US-India tax treaty that would prevent claiming these credits once you're a resident alien. But if you're from a different country, it might be worth checking. The IRS Publication 901 has details on tax treaties.

Make sure you're also aware of the credit limitations! I made a mistake with this last year. You can't claim both the Lifetime Learning Credit AND the American Opportunity Credit for the SAME student in the SAME year. You have to pick one. For most people who qualify for both, the American Opportunity Credit is usually better because the maximum credit is $2,500 compared to $2,000 for the Lifetime Learning Credit. But as others mentioned, AOTC is only for the first 4 years of post-secondary education.

I went through this exact situation two years ago! As an F-1 student who became a resident alien for tax purposes, you're absolutely eligible for education credits. The key thing to understand is that once you pass the substantial presence test (which you clearly have after being here since 2016), your visa status doesn't matter for most tax benefits - you're treated just like a US citizen. Since you're in your 7th year, you'll likely need to go with the Lifetime Learning Credit rather than the American Opportunity Credit. The LLC covers up to $2,000 per year (20% of the first $10,000 in qualified expenses) and there's no limit on how many years you can claim it. One thing I wish I had known earlier - make sure you're only claiming qualified tuition and required fees from your 1098-T. Don't include things like room and board, health fees, or parking fees as those aren't eligible expenses. Also, if you received any scholarships or grants, you'll need to subtract those from your qualified expenses. The income limits are definitely something to watch out for too. As a single filer, the credit starts phasing out at $80,000 MAGI and completely disappears at $90,000. But if you're a typical student, you're probably well below those thresholds. My advice? Go ahead and claim it if you qualify - you've been paying into the system as a resident alien, so you deserve the same benefits!