What counts as four years of college credit?

[simone-demich]

I have an AA degree, but I have also attended a community  college for over 6 years (mostly taking electives and theater classes and not working towards a degree.) Does this count as 4 years of college credit?

[Fern]

If you are working toward a four-year degree, you will meet the part of the definition of an eligible student defined as “has not completed the first four years of post-secondary education as of the beginning of the taxable year”.  The fact that you have taken more than 4 years working toward the degree is not what is being measured.  The fact that you have not completed it yet is what is being measured.

However, it is important to keep in mind that you can only take the American Opportunity Credit for 4 years.  If you have taken the credit 4 times, you are no longer eligible even if you have not earned a four year degree in that time.

[naiad17]

What if I had already completed a bachelor's degree and was working on a second one during the year I'm reporting on?

[tcbushman]

If I completed my bachelor's degree in 3 academic years (2013-16) could I have claimed the American Opportunity Credit for 2018 during my first year of grad school? I'm confused if I had completed four years of post secondary education or not as the definition is vague on the IRS site. The AOC was claimed for me in 2014, 2015, and 2016, so if I have one more year of eligibility I would like to amend my 2018 return to claim it as that would significantly increase my refund.

[KrisD15]

No. You may claim it up to four times, but if the degree was earned before Jan 1, that student is no longer eligible to claim the American Opportunity Tax Credit. 

[tcbushman]

Thank you Kris. How do you know that? Is the four years of college credit synonymous with a bachelors degree, regardless of the years it took to complete? Can't seem to find clarity on the IRS site as they just speak of years of education, not degrees. https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

Q9 seems to muddy it more. 

[AmyC]

Q9 in your link states that as long as January 1 of that school year, the student had not received a degree, then all classes count towards AOTC. The AOTC is only allowed 4 times. The IRS based that on an average of 4 years for an undergraduate degree. The lifetime learning kicks in after that.

@tcbushman

Related:

Who is eligible to take the American Opportunity Tax Credit?

What education tax credits are available?

[tcbushman]

Well, it doesn't mention a "degree", only refers to four years of post-secondary education as of the beginning of the year...  as of the beginning of 2018 I had only completed 3 years of post secondary education.

But I think you and kris are probably right. 

[AmyC]

The actual instructions for the Education Credit, on page 2, does clearly state first four years of post-secondary education. To me, that implies any degree within the first 4 years. Instructions for Form 8863 (PDF) (HTML) Best wishes!

[thephatyap]

So if it was my fifth year in college at the beginning of 2019, but had only applied for the AOTC 3 times prior, I do not qualfiy?

[KrisD15]

Yes, as long as you hadn't finished the program prior.

Don't think calendar years, think Freshman, Sophomore, Junior, Senior. 

If you had not earned a bachelor's by 01-01-2019 you were not past the first four years of a degree. 

It doesn't matter how many years it takes for you to get to that point. 

The credit is still available if you,or anyone claiming you (such as your parents) did not claim the credit 4 times already (combined) 

[Carl]

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.

You can only claim the AOTC four times. That's it. The AOTC is only available to an undergraduate. If you already have a four year degree in a specific field of study, then you are no longer an undergraduate.

If you are working on another degree in another field of study, then while you may be an undergraduate in that field, if you already claimed the AOTC four times, you can't claim it again. Not ever for so long as you may live.

[thephatyap]

Just to confirm, so if I was already at Senior Credits (120) at 1/1/18, then I was still considered a senior at 1/1/19 (150 credits at this point...engineering), but no bachelors degree (Still undegrad), then when it asks the question if I completed the first 4 years of post-secondary education before 2019, I would still say no?

[Andra89]

@KrisD15 

I completed my Bachelor’s Degree and my first Master’s Degree more than 10 years ago, in a different country, while I had a different citizenship. 
I now have dual citizenship and I started an Accounting graduate program in the US in 2021. Since I never claimed the American Opportunity Credit, am I eligible for it now, even though I am a graduate student? 

[ErnieS0]

You would not be eligible for the American Opportunity Tax Credit because you completed the first four years of post-secondary (education after high school) at the beginning of the tax year.

You may be eligible for the Lifetime Learning Credit.

To be eligible for LLC, the student must:

• Be enrolled or taking courses at an eligible educational institution.
• Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills.
• Be enrolled for at least one academic period* beginning in the tax year.