Can I claim the American Opportunity Credit (AOC) again?

[valaena]

So, after cross-referencing my tax documents, I believe I received Form 1098-T three times, but have only claimed it on the last two tax returns (2023 and 2024). I know you can claim it up to 4 times, but the part I'm not sure about is the "Did the student complete the first 4 years of postsecondary education before 2025?" question. 

I recently graduated from community college with an Associate of Science degree. It took me from Fall 2021 to Fall 2024 because I was mostly doing half-time.

This semester, Fall 2025, I entered the 2-year sonography program at the same community college, which is a non-transfer AS degree program for an Associate of Science degree in diagnostic medical sonography.

Question 1: Would I select YES or NO to "Did the student complete the first 4 years of postsecondary education before 2025?"

Question 2: Will I still be allowed to claim the American Opportunity Credit for 2025 and later for 2026?

I know the Lifetime Learning Credit (LLC) exists, but it's non-refundable, and I don't owe any taxes to require its use.

[Bsch4477]

You have not completed your 4 year degree but since you have no earned income, if you have a living parent and under age 24 you can’t get the refundable portion of the AOC credit. 

[valaena]

Just to be sure, I'm 23 and have earned income for 2025 and will get a W-2 for 2025. I just didn't make enough money to owe anything, but I recently quit my job this December. My parents paid for my classes. Could I still qualify for this year's AOC or no? Also, I'm turning 24 in March, but I will not be getting another job for the remainder of the program. Could I claim it for 2026 since I'd be 24, or would it still not count since I won't have earned income?

[Bsch4477]

Your parents should claim it this year and you can claim it next year but only if you are not a dependent. 

[Hal_Al]

Q.  Could I still qualify for this year's (2025) AOC or no?

A. No.

 A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit (AOC) if he supports himself by working (your earned income must be more than half your support. "Support" includes the cost of school). You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit. 

Q.  Could I claim it for 2026 since I'd be 24?

A. Yes. The earned income rule will no longer apply to the refundable portion of the AOC.  The dependency test may still apply. You cannot claim the (up to) $1000 refundable credit if you are claimed as a dependent by someone else.  Because you are over 23, you can claim the refundable portion of the AOC, even if you qualify as a dependent, as long as you are not actually claimed as a dependent. 

[Hal_Al]

My reply, above, has been edited.