American Opportunity Credit

[NotEasy]

The son of taxpayer started college in Sep 2006. He completed his bachelor degree in May 2009 (he completed the bachelor degree in 3 years). And then he continued to go to a pharmacy school in Sep 2009. Is the tuition fee that his parents paid to the pharmacy school eligible for the American Opportunity Credit?

It is not within the first 4 years of the course of study. But it is within the first 4 years counting from the day that he started college. Any opinion?

[Matt Sova]

Llc

I don't believe the costs paid for advanced degrees count for the AOC. However, they would be eligible for the Lifetime Learning Credit.

[AJsTax]

The question

asked is "have you (the student) finished the first four years of college education BEFORE 2009. Therefor I think he would for this last year.

[Jesse]

Agree with AJ's tax answer. Look in Pub 970 (I think) there is an example of a student w/ Spring semester is 4th year and fall semester then qualifies even though this would be the start of the 5th year, I'd try to find the link but I don't have time now.

[Questionguy101]

Agree with AJ's tax answer. Look in Pub 970 (I think) there is an example of a student w/ Spring semester is 4th year and fall semester then qualifies even though this would be the start of the 5th year, I'd try to find the link but I don't have time now.

I have just read Pub 970. On page 13, this is what they said as to being an eligible student. It says " The student had not completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, senior years of college) before 2009."

I think the key words are "before 2009". So I take it to mean that if the student completed his 4 years degree in May 2009, he is eligible because he has not "completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, senior years of college) before 2009."

Does anyone have a different opinion?

[Jesse]

I agree this is the example from Pub 970

Example 2.

After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2009 spring semester. College V classified Shelly as a second-semester senior (fourth year) for the 2009 spring semester and as a first-semester graduate student (fifth year) for the 2009 fall semester. Because College V did not classify Shelly as having completed the first 4 years of postsecondary education as of the beginning of 2009, Shelly is an eligible student for tax year 2009. Therefore, the qualified education expenses paid for the 2009 spring semester and the 2009 fall semester are taken into account in calculating any American opportunity credit for 2009.