Yes, there is an education credit available for the cost of a high school student taking college classes before graduation from high school, but specific conditions must be met.
- American Opportunity Tax Credit (AOTC): The tuition and related expenses for the college classes taken by the high school student during high school are eligible for the AOTC only if, during the same tax year, the student subsequently enrolls at least half-time in a postsecondary education program leading to a degree, certificate, or other recognized educational credential for at least one academic period at an eligible educational institution and receives credit from the institution for the college classes taken before graduation from high school.
- Lifetime Learning Credit (LLC): Alternatively, the Lifetime Learning Credit can be taken, subject to certain eligibility requirements, for any qualified tuition or related expenses to furnish the high school student with one or more courses at an eligible educational institution to acquire or improve job skills.
- Eligible Educational Institution: The college or university where the high school student takes the classes must be an eligible educational institution, which generally means it must be accredited and eligible to participate in a federal financial student aid program administered by the Department of Education.
- Qualified Education Expenses: The expenses must be for tuition and related expenses required for enrollment or attendance at an eligible educational institution. Expenses for sports, games, hobbies, or noncredit courses do not qualify unless they are part of the student's degree program.
- Claiming the Credit: If the student is claimed as a dependent on a parent's tax return, the parent can claim the education credit. The expenses paid by the dependent are treated as if they were paid by the parent.
In summary, the AOTC and LLC can be claimed for the cost of a high school student taking college classes before graduation, provided the student meets the enrollment and institutional requirements, and the expenses are qualified education expenses.
Sources:
Instructions for Form 8863 (2023)
Publication 1966
§ 1.25A-3. Hope Scholarship Credit.
Publication 4128 (5/2020)
Publication 970 (2023)
