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In the IRS’s own words · not reviewed by VALID
CP03 notice explained, in the IRS’s own words
You claimed the American Opportunity Tax Credit (AOTC) on the Form 8863, Education Credits, you filed with your Form 1040 tax return. Our records show you already claimed this credit for four tax years for the same student. The credit is available for only four tax years per student. This notice has been sent to inform you of this discrepancy and to help you verify if you claimed this credit correctly.
Read the full CP03 page on irs.gov ↗
Some CP03 notices were issued with an incorrect tax year
If you received a CP03 notice dated Nov. 26 that references tax year 2025, the notice was intended for tax year 2024. Please refer to your 2024 Form 1040 tax return when you follow the instructions on the notice.
What this notice is about
You claimed the American Opportunity Tax Credit (AOTC) on the Form 8863, Education Credits, you filed with your Form 1040 tax return. Our records show you already claimed this credit for four tax years for the same student. The credit is available for only four tax years per student. This notice has been sent to inform you of this discrepancy and to help you verify if you claimed this credit correctly.
You may want to
Review your Form 1040 (Form 8863, Part I) federal tax return and common errors to make sure you correctly claimed the AOTC. If you claimed this credit in error:
- File an amended tax return. If you filed electronically, you may file your amended return electronically.
- Don’t claim the AOTC on future returns for the same student.
- Share this letter with anyone helping you with preparing your returns.
- If you file an amended federal tax return, you may also need to file an amended state or local tax return.
Failure to review and address any incorrect information could result in additional communication from the IRS.
Frequently asked questions
What is the American Opportunity Tax Credit? (added Oct. 15, 2024)
A credit for qualified education expenses paid for an eligible student for the first four years of higher education.
Who is eligible for the American Opportunity Tax Credit? (updated Dec. 1, 2025)
An eligible student must meet at least the following:
- Not have claimed the AOTC or the former Hope credit for more than four tax years.
- Be pursuing a degree or other recognized education credential.
- Be enrolled at least half time for at least one academic period beginning in the tax year.
- Not have finished the first four years of higher education at the beginning of the tax year.
- Not have a felony drug conviction at the end of the tax year.
Visit Interactive Tax Assistant: Am I eligible to claim an education credit? for more information.
What is the difference between academic years and tax years? (updated Dec. 1, 2025)
Regardless of a student’s academic year, you may only claim the AOTC for up to four tax years.
Schools set the academic year. Examples of academic years include semesters, trimesters, and quarters. Academic years may be different than tax years, and this is important for properly claiming the AOTC.
A tax year is an annual accounting period for keeping records and reporting income and expenses. This is often a calendar year – 12 consecutive months beginning Jan. 1 and ending Dec. 31. Ensure you review how your school reports their academic year on your Form 1098-T, Tuition Statement. See the table below for an example of Academic and Filing Years or for more examples visit chapter 2, Publication 970 PDF.
My student doesn’t qualify for the AOTC. Are there any other education credits I can claim? (added Oct. 15, 2024)
If you or your dependent doesn’t qualify for the AOTC, you or your dependent may qualify for the Lifetime Learning Credit (LLC). This credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate, and professional degree courses — including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit.
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.