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In the IRS’s own words · not reviewed by VALID
CP321L notice explained, in the IRS’s own words
This notice explains that taxpayers who previously claimed the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC) using an individual taxpayer identification number (ITIN) must now have a valid Social Security number (SSN) to qualify for these credits.
Read the full CP321L page on irs.gov ↗
What this notice is about
This notice explains that taxpayers who previously claimed the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC) using an individual taxpayer identification number (ITIN) must now have a valid Social Security number (SSN) to qualify for these credits.
What you need to do
- Use the Tax Withholding Estimator to review your withholding if you do not meet the new SSN requirement.
- Update Form W-4, Employee’s Withholding Certificate, to adjust your withholding or make an estimated tax payment, if necessary.
Failure to review and address how this change affects your taxes could result in a balance due when you file your return.
What is AOTC?
American Opportunity Tax Credit is a partially refundable credit available for the first four years of post-secondary education. The student must be pursuing a program leading to a degree or other recognized education credential.
What is LLC?
Lifetime Learning Credit is a non-refundable education credit available for students taking a course to acquire or improve job skills.
What is a “valid” SSN?
A valid SSN to claim AOTC or LLC must be valid for work and issued by the Social Security Administration before the due date of your 2026 return (including extensions).
Who must have a valid SSN?
Beginning with tax year 2026, you or your spouse (if married filing joint) and the student (if your dependent) must meet this requirement. If you are filing a joint return, only one spouse is required to have a valid SSN. The other spouse can have an ITIN.
What if I have multiple students?
Each student must have a valid SSN and other criteria to qualify for AOTC or LLC. You can claim only one of the education credits per qualifying student. However, you can claim both the AOTC and LLC on the same return only if they are not for the same student and the same expenses.
Will this affect my prior year returns?
No, the new SSN requirement only affects the current year and future year returns. These changes will not apply to your prior year returns.
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.