I understand your response; however, for the AOTC, IRS Publication 970 allows one to prepay expenses for the academic period that starts in the first 3 months of the subsequent year and claim that academic periods expenses as if they were incurred during the prior year (Chapter 2, 3rd paragraph (last section on page 12) of heading entitled Who Can Claim the Credit. Further, under Adjustments to Qualified Education Expenses - Refunds, it allows refunds paid on behalf of the student to be claimed on the prior year taxes if the refund is paid before the tax return is filed (page 15). Together, this leads me to believe that if I pay the expenses for the academic period starting in Jan - Mar of the following year prior to Dec 31st and I do not submit my tax return until the refunds for that same period are credited, then I can treat that period as if it took place the prior year. Please let me know if this is an incorrect interpretation.
