PART A Credit For Taxes Paid To Other States (NOTE: CR Credits are NOT allowable for Nonresidents) 2025

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Answer. The statement that is not a criteria for the American Opportunity credit is: The individual must be a full time student.
If you also have income earned in another state where you did not live (your nonresident state), you are usually allowed a credit on your resident state return for taxes paid to that other state (or other jurisdiction as some states term it) if the income was actually taxed by both of the states.
Qualified education expenses never include personal expenses. Room and board, insurance, medical expenses, transportation, and other living costs are examples of nonqualified personal expenses.
A nonrefundable tax credit can only reduce tax liability to zero. A refundable tax credit results in a tax refund if the amount owed is below zero. Examples of nonrefundable credits in the U.S. tax code include the foreign tax credit (FTC) and the savers credit.
In general, insurance, medical expenses, transportation, and living expenses are not qualified school expenses for an education credit. Likewise, non-credit courses are not qualified education expenses, unless they are part of a degree program.
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The AOTC allows an annual $2,500 tax credit for qualified tuition expenses, school fees, and course materials. Room and board, medical costs, transportation, and insurance do not qualify, nor do qualified expenses paid for with 529 plan funds.
How to manually add New York State Resident Credit Click State on the left side menu. Click the three dots to the right of New York part-year and select Edit Click Begin or Edit on Credits. Click Begin on Credit for taxes paid to another state. Complete the information requested.
A student eligible for the American Opportunity tax credit: has not completed the first four years of post-secondary education. enrolls in at least one academic semester during the applicable tax year. maintains at least half-time status in a program leading to a degree or other credential.

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