I started my first year semester in Fall 2015. Would a first year second semester that started January 2016 count as first year or second year of school?

[Texas Roger · Accepted solution]

The year of school is what the school classifies you as. It used to be Freshman, Sophomore, etc.  Your second semester would normally still be your first year of school. The issue for the AOC eligibility is how many tax years you have claimed the credit. If you are still an undergraduate in a specific tax year, you can claim the AOC on 4 different tax return years.