American Opportunity Credit as relates to Five Year Degree

[pupips]

My child is studying under a five-year degree, and five years of courses is what the school requires for this undergraduate degree. So my child can't receive a bachelor's or complete within four years. None of the course work or credits are graduate school credits.

We also have not claimed the American Opportunity Credit during the last three years. I've checked our returns.

How is the "four years" rule treated for students who could not graduate within four years?

[CatinaT1]

The maximum number of years you can claim the American Opportunity Credit is for 4 years.

Please see the links below for the qualifications of the different Education Tax Breaks.

  

Tuition and Fees Deduction 

  

Education Credits 

[pupips]

Thank you very much for the reply.

This credit has not been claimed for four years, so unfortunately, I'm still uncertain as to whether the credit can be claimed for the past year. Thank you again for your reply.

[MayaD]

Yes, you can claim the credit if it has not been claimed for 4 years and, you qualify for the credit.

Who is eligible to take the American Opportunity Tax Credit?

[pupips]

Thank you for providing that additional information.

How is "Didn't complete the first four years of post-secondary education before the beginning of the year" calculated?" I'm uncertain what criteria are used to determine "complete first four years."

Thank you again for your help.

[AnnetteB6]

Based on reading information on the IRS site, there does not seem to be a strict definition of what constitutes the first four years of higher education other than to say it is a calendar year.  The American Opportunity Tax Credit (AOTC) can only be claimed for a total of four tax years.

Eligibility for claiming the AOTC is not tied to receiving a Bachelor's degree.  If the student has finished their first four years of college as of the first day of the tax year, then they are not eligible for the AOTC.  

For more information, see the following IRS site:  American Opportunity Tax Credit

@pupips

[Hal_Al]

I think it's best explained by example. Your school grants a 4 year degree upon completion of 120 credits.  You are in a program that grant a 5 yr degree for 150 credit.  If you have accrued 120 credits toward you degree,  for purposes of the AOTC, you have completed years of post secondary education.