AOC. Did you complete the first four academic years of your post-secondary education before ....?

[NataliaVF]

I am receiving my BSN in the USA right now. I have received the 1098-T form from my University.  I have never claimed AOC before. I have BSN from a foreign country. Since I did not complete my post-secondary education in the US,  can I claim AOC for the 1st time? If not, why?  I understand it says, "first four academic years of your post-secondary education".  Technically I did, but not in the US. So how is that relevant to the US government if I have never received any  Tax credits, loans, or subsidies for education in the US before? 

Thank you  

[PattiF · Accepted solution]

If your BSN was received at a foreign institution that is considered an eligible institution in the list of foreign schools found in this link, then you cannot claim the AOTC for your schooling here in the US.

Check the Database of Accredited Postsecondary Institutions and Programs in the link above to see if your first school is listed there. If it is not found, then you are eligible to apply for the AOTC. This is backed by a US tax code "that redirects to sub paragraph (b)(2)(C)— it clearly expresses that those first 4 years had to be completed at an eligible institution".  

If your first school is listed, you would still be eligible for the lesser Lifetime Learning Credit. 

[Hal_Al]

Deleted

[NataliaVF]

Thank you for the response.  But now I am very confused by receiving two responses to my question. 

 Can you cite the source so I can read more about this?

It seems not clear and very broad when I read Publication 970. 

p.11 Publication 970 

"As of the beginning of 2022, the student had not completed the first four years of postsecondary education.
(generally, the freshman through senior years of college), as determined by the eligible educational institution. 

So I could not find my European institution on the list of eligible educational institutions. 

[Hal_Al]

There is some disagreement on the topic. Here's some additional opinions on this subject:

https://ttlc.intuit.com/community/college-education/discussion/does-bachelor-degree-earned-from-othe...

[DanaB27 · Accepted solution]

As Tax Expert PattiF mentioned the law states “The American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution.”

Pub 970 defines an eligible educational institution as “Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.”

Therefore, if your foreign institution isn’t recognized as an eligible educational institution then should qualify for the AOC if you meet all requirements.

[AnnetteB6 · Accepted solution]

The IRS Publication 970 reference provided above by DanaB is specifically defined that way for the purpose of the American Opportunity Tax Credit (AOTC).  

As also referenced in the link provided by Hal_Al and answered by TaxGuyBill, if your current college recognizes that you already have a four-year degree, then the AOTC would not be available to be claimed.  So you may need to clarify that with your registrar's office.

Ultimately, the IRS will determine whether the credit is allowed or disallowed.  You can only include it on your tax return if you feel that the qualifications have been met to claim the credit.

@NataliaVF