Education Credit

[Earl]

The American Opportunity Credit is now available for the first 4 years of education. If a student started school in fall of 2005 (fall semester) went all of 2006, 2007, and 2008 would his eligibililty be used up or would the spring semester of 2009 be eligible since he would only be a senior on January 1, 2009.

[dsi]

My interpretation is that until the student has completed 4 years, the AOEC is availalbe.

[BOB W]

My interpretation is that until the student has completed 4 years, the AOEC is availalbe.

From what you are saying, a student is eligible for 5 years of hope credit. The original hope credit allowed 2 hope credit filings. With that expanded to 4 years it still only allows 4 hope credit filings, not 5.

[jimmcg]

From what you are saying, a student is eligible for 5 years of hope credit. The original hope credit allowed 2 hope credit filings. With that expanded to 4 years it still only allows 4 hope credit filings, not 5.

Bob is correct. Reference Pub 970 under "who is an eligable student" for the current Service interpretation.

[Brian EA]

The way I see it is : if college was started ion 2009 then the 4 year credit applies. Before 2009 it would be the 2 year Hope or lifetime credit

brian

[AJsTax]

I do not agree with

Brian, If you took the Hope for the first two years, LTLC for the Jr year b/c the Hope was not available, there is nothing stopping you from taking the AOC for the fourth year in 2009. That the whole purpose of the change, to expand the credit again to students that had run out of time for the Hope. The hope in only for those in the Midwestern disaster area.

[Gretel]

I don't read Earl's post that the student actually has used the credits. I believe just as the HOPE credit could be used in 2 out of 3 eligible years, the new credit can be used 4 out of 5 eligible years. The spring semester would qualify and since this is a new credit there is no way he could have used up his 4 years.