It was recently addressed to us as tax preparers that we have to take a further step than we may have taken in the past to on the American Opportunity Credit (AOC).
Especially with today’s youth they believe that it is their right and privilege to use controlled substances as they please. But since this is still illegal there is an eligibility requirement for the AOC, that the student be free of federal or state felony conviction for possessing or distributing a controlled substance.
So it is now sits upon our hands to ask the parents or the individuals if they have a state or federal charge against them before we can process the credit on their behalf.
It seems that we as preparers are bow becoming “Big Brother” to our clients. This will not make any of us happy or comfortable.
It may make sense to have this conversation with your children before you lose the ability to claim this credit.