Q. Can you pay a semester's tuition in 2 tax years and claim American Education credit in both years?
A. Yes, but only in the special situation you describe. "Generally, the credit is allowed for adjusted qualified education expenses paid in 2024 for an academic period beginning in 2024 or beginning in the first 3 months of 2025" (Pub 970, pg 12).
As an example of what you can NOT do: You graduated in 2023, but didn't pay some of your 2023 tuition bill until January 2024. You cannot claim a tuition credit in 2024. You also cannot use the 2024 payment to claim a tuition credit on your 2023 tax return.
