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Lifetime Learning Credit - HELP!

Victoriacol
Level 1

Taxpayer paid tuition in December 2024 for program starting in January 2025.  We have a 1098-T from institution for which box 7 is checked (indicates amounts paid are for an academic period beg in 2025).  Taxpayer already completed 4 years of college. On the Student Info-T worksheet first question is "Was this person a student during 2024?" and if I answer 'No' it disallows the Lifetime Learning Credit. Do I just answer 'Yes'? 

Also - in Part II of same worksheet, questions 4 and 5 below - not sue if I should answer Yes, No, or NA since the program doesn't start until Jan 2025.

Q4 - Was this student taking courses as part of a postsecondary degree program or to acquire of improve job skills? 

Q5 - Did this student take at lease one-half the normal full-time workload for one academic period?

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2 Comments 2
BobKamman
Level 15

When all else fails, read the Instructions.

To Form 8863, page 7:

If any qualified education expenses for the student were paid
in 2024 for an academic period beginning in the first 3 months of
2025, treat that academic period as if it began in 2024. See
Student qualifications and Prepaid Expenses, earlier.

And Page 4:

Prepaid Expenses
Qualified education expenses paid in 2024 for an academic
period that begins in the first 3 months of 2025 can be used in
figuring an education credit for 2024 only. For example, if you pay
$2,000 in December 2024 for qualified tuition for the 2025 winter
quarter that begins in January 2025, you can use that $2,000 in
figuring an education credit for 2024 only (if you meet all the
other requirements).

Victoriacol
Level 1

Thanks so much - seems to me like the smart worksheet should have another box to check for that situation so you don't have to technically answer the question incorrectly.

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