topic Question about American Opportunity Credit in Education

Question about American Opportunity Credit

Trust421 — Tue, 18 Feb 2025 23:19:08 GMT

Hello,

I have completed two associate's degrees at a community college. 2015-2019, started and then stopped again in 2021. Now picking back up again in 2024-2025.

I am currently working on a bachelors but I am still taking a few courses at the same community college as it is cheaper to transfer credit. I have not officially started courses at the college that offers bachelors degrees.

Am I still eligible for the AOC? I have never claimed credit for AOC. This four year rule seems so confusing!

EDIT: I was a dependent from 2015-2016 but have been independent since then.

Re: Question about American Opportunity Credit

Hal_Al — Tue, 18 Feb 2025 23:24:04 GMT

Simplifying the 4 year rule, if you haven't received a bachelors degree, or the credits for a bachelors degree, you have not completed 4 years of post secondary education. You are still eligible for the AOTC.

Any AOTC your parents claimed, while you were their dependent, count against the four times that you are allowed to claim it.

Re: Question about American Opportunity Credit

Bsch4477 — Tue, 18 Feb 2025 23:25:22 GMT

As long as you haven’t yet got your degree you are eligible for the AOC assuming that you meet the other requirements.

Re: Question about American Opportunity Credit

AmyC — Tue, 18 Feb 2025 23:27:09 GMT

Yes, you can only claim AOTC for years you are an undergraduate and a maximum of 4 times is allowed. Because much of the credit reduces your tax liability, it is good to use it when you have the full $4,000 of expenses and you made a higher income.

Do check with your parents because the IRS keeps up with how many times it has been claimed.