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posted Mar 12, 2025 12:12:04 PM

American Opportunity Tax Credit (Eligibility) - 4 Calendar or Academic Years

The main question is the following for the AOTC credit.

 

1. What does "Not have finished the first four years of higher education at the beginning of the tax year" mean?

 

I've read debates/discussions about if its 4 calendar years or 4 academic years.


I'm note sure if I'm eligible as I've been working through school......super slow.

I got my associates like 2 years ago and now working towards bachelors. 

I have about 10 classes remaining to get a bachelors and after checking, I've only claimed the credit once in like 2019.

I meet all the other requirements, but have no clue about the years one.

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3 Replies
Level 15
Mar 12, 2025 12:32:56 PM

It means you haven’t yet gotten your degree by that date. 

Expert Alumni
Mar 12, 2025 12:39:32 PM

The first four years of higher education usually refer to post-secondary education or undergraduate degrees (associated degrees and bachelor). The 4 years do not need to be consecutive, but it must be within the first four years of education. If you only claimed the credit once and have not graduated yet or completed the full four-year of college, you are still eligible to claim the credit.

Level 15
Mar 12, 2025 4:02:28 PM

The simple answer is: if you haven't receive a bachelor's degree, you have not "finished" four years of post secondary education, for purposes of claiming the AOTC.