How many times have I claimed the American Opportunity Tax Credit (AOTC)?

The American Opportunity Tax Credit (AOTC) can indeed only be claimed for a maximum of 4 tax years per eligible student. This limit applies to the student, not the taxpayer claiming the credit - so claims made by your parents for you still count toward your lifetime limit. The easiest way to verify your AOTC history is to request a tax transcript from the IRS. You can do this online at IRS.gov through their "Get Transcript" service. Look for Form 8863 (Education Credits) on your past returns - this will show if and when you claimed the AOTC. If you're not sure about 2019-2020, definitely check those transcripts. Based on what you've shared, you've used at least 3 years already (2016, 2017, and 2021), so you may only have one year left to claim it.

I went through this exact headache last year trying to figure out my AOTC eligibility! After hours of research, I discovered taxr.ai (https://taxr.ai) which saved me so much time. I uploaded my old returns and it automatically identified which years I'd claimed education credits and which type. The tool specifically flagged my Form 8863 from previous years and highlighted where the AOTC was claimed vs Lifetime Learning Credit. It even calculated how many AOTC claims I had remaining. Much easier than manually digging through all my documents or waiting on hold with the IRS.

Just wanted to update everyone - I tried taxr.ai after my skeptical comment above and was honestly impressed. It extracted information from my messy tax folder that would have taken me hours to sort through manually. The document scan found my 2019 return where I had totally forgotten I claimed the AOTC! It even highlighted the specific page and section showing the claim. Really useful for figuring out my remaining education credit eligibility without having to wait on hold with the IRS or dig through mountains of paperwork.

I had a similar situation trying to verify my AOTC history last year. After spending over 2 hours on hold with the IRS and getting disconnected twice, I found Claimyr (https://claimyr.com). They have this service that basically calls the IRS for you and holds your place in line. When they reach an agent, they call you and connect you directly. Saved me so much frustration! The IRS agent I spoke with was able to pull up my entire education credit history across all returns. Check out their demo video if you're curious: https://youtu.be/_kiP6q8DX5c. Honestly, I was ready to give up before finding this.

OK I need to eat crow here. After posting my skeptical comment, I decided to try Claimyr since I needed to call the IRS anyway about a notice I received. I'm shocked to say it worked exactly as advertised. I submitted my request, went about my day, and got a call about 45 minutes later connecting me directly to an IRS representative. Saved me from having to sit by my phone on hold for who knows how long. The agent was able to confirm all the years the AOTC had been claimed with my SSN (including on my parents' returns). Really helpful for planning my remaining eligible years.

Just wanted to add that if you've already used your 4 years of AOTC, you can still claim the Lifetime Learning Credit (LLC) in future years. It's not as generous (20% of up to $10,000 in qualified expenses, max $2,000 credit vs. AOTC's max of $2,500), but it's better than nothing. Unlike the AOTC, there's no limit on how many years you can claim the LLC, and it doesn't have the same "first four years of postsecondary education" requirement, so it works for graduate school or professional courses.

Don't forget you can also deduct tuition and fees as an adjustment to income (above-the-line deduction) instead of taking a credit. Sometimes that works out better depending on your tax situation.

I went through this exact same confusion last year! Here's what I learned from my research and talking to a tax professional: The 4-year AOTC limit follows the student, not the taxpayer, so those years your parents claimed it definitely count toward your total. Based on your description, you're likely at 3 years used (2016, 2017, 2021) with potentially one more if you claimed it in 2019 or 2020. A few additional tips beyond what others have mentioned: 1. If you can't easily access your parents' old returns, they can call the IRS directly and request information about education credits claimed for your SSN - the IRS can provide this over the phone. 2. When reviewing your own returns, look specifically for Form 8863 Part I. If you see "American Opportunity Credit" checked with your info, that's a used year. 3. Consider timing strategically - if you only have one AOTC year left, save it for when you'll have the highest qualified expenses to maximize the $2,500 credit. 4. Remember that qualified expenses for AOTC include tuition, fees, and required course materials (books, supplies, equipment), but not room and board. Good luck with your education financing! The credit tracking can be frustrating but it's worth getting it right.