You can consider yourself to have not completed four years of college, since you have not yet attained an undergraduate college degree, but the American Opportunity Tax Credit may not be taken more than four times, no matter how long it takes to complete your degree. After that, you may qualify for the Lifetime Learning Credit. See: Instructions for Form 8863 (PDF); What education tax credits are available?
Yes, the cost of required materials paid in a flat fee can be added to your book fees.
