Amending return for lifetime learning credit

[jjtrcka221]

I have a client that claimed the American Opportunity Credit for 4 prior years, but their AGI was higher in those years.  This year it is much lower and they had more education expenses.  They would be better off being able to claim the AOTC this year and LLC for one of the prior years.  Is there anything that prevents amending a prior year return to not take the AOTC for that year (even though eligible) and then take the AOTC in the current year (since they would now have only taken it for 3 years)?

[Karl]

That should be find to amend for. I don't think either of those credits involve irrevocable elections or different statutes of limitations than the whole return or any requirement to use up AOTC consecutively.

I would however, amend PY asap, extend CY and wait until fall to file CY just to reduce the risk of an automated notice from ships passing in the night. If the amended return still isn't processed by then, I'd maybe even add an 8275 disclosure form in CY to call attention to it so that if a notice would be auto-generated, an agent looking at the 8275 might see it and be able to override it.

[jjtrcka221]

Thanks for the response.  Now, what exactly would i need to do to change it?  I know how to amend the return, but can you force the return to go with lifetime learning credit when the taxpayer is eligible for the AOTC?

[Karl]

After you setup the amended return in Screen 59, check this box in Screen 38.1