How Do I know if qualify for the ATOC with the 4 year time limit?

[tburtch99]

I started College in 2017 but I have not completed 4 complete academic years of college and I am wondering if I can still qualify for the ATOC in the 2023-2024 academic year for my taxes next year. The semesters I have attended are Fall 2017, Winter 2018, Winter 2019, Winter 2021, Fall 2022 and Winter 2023. My time at college has spanned 6 years but I have only completed 6 semesters or 3 years of school. Could I still qualify for the ATOC? I have never claimed the ATOC before. I just learned about it recently. I have also been at the same university the whole time.

[rjs]

It's AOTC, American Opportunity Tax Credit, or just AOC, not ATOC.

Yes, you qualify for the credit. There is no 4-year time limit. The limitation is that you can claim the credit a maximum of 4 times, but the elapsed time doesn't matter. As long as you have not already claimed the credit 4 times, and you have not completed 4 years of academic credit, you can claim the AOTC.

[Hal_Al]

Yes, since you have not completed 4 academic years, you are still eligible for the AOTC.  But also be aware that you (and or your parents) may only claim the AOTC a maximum of 4 times.  

If you (or your parents) failed to claim the AOTC, in recent years, you may still file amended returns for, 2020 and/or  2021.

Be aware of one other restriction: 

 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 if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit. 

Generally, you cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

[NCperson]

the deadline to submit an amendment to obtain a refund for the 2019 tax year is July 15, 2023, so there is still time......

[Carl]

As an addendum be aware of the following.

The IRS works in calendar years, while colleges work in academic years. So the reality is, it takes you five calendar years to get that four year degree. The AOTC can only be taken for a total of four calendar years. Those calendar years do not have to be consecutive either.

That's why I recommend that one pay for the last semester of their senior year, before the first semester ends, as the last semester of the senior year will be the 5th calendar year.