Figuring the Credit
Here are the general steps for figuring the amount of education credits:
To determine the amount of qualified expenses, please review Form 1098-T and have a discussion with the taxpayer to determine the qualified education expenses paid.
If you find taxpayers claimed an education credit in a prior year and they were refunded part or all of the expenses they used to claim the American opportunity or lifetime learning credit, they may have to repay (recapture) all or part of the credit. This is beyond the scope of the VITA/TCE programs. Information can be found in Publication 970. Advise the taxpayer to consult a professional tax preparer.