American Opportunity Credit in Masters program

[nularry]

I completed my Bachelors degree in 2 years online (2018 & 2019), in 2020 I completed my Masters degree.  Since I only went to school for 2 years for undergrad, can I use 2020 (master's) for AOC (American Opportunity Credit)? 

[ColeenD3]

Yes.

Who is an eligible student for AOTC?

To be eligible for AOTC, the student must:

• 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 claimed the AOTC or the former Hope credit for more than four tax years
• Not have a felony drug conviction at the end of the tax year

*Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

[Hal_Al]

No.  You had essentially completed the first 4 years of post secondary education (you had 4 years of credits) prior to 1/1/20.

In simple terms masters courses are not eligible. 

[nularry]

Thank you for your reply, although I understand that is what people think; but the IRS Code specifically states "The Student must be in their first 4 years of post secondary education, which for most students is the first four years of undergraduate education"  The fact they say "Most students" means not all.  Which is why I am questioning it. 

I actually just talked to an IRS agent today, who did research in their files and cases, and he could not come up with anything concrete saying only for bachelors degree or a case where this has come up; he recommended taking the credit.  I would love to hear if someone knows of a court case or letter ruling on it.