America Opportunity Credits

[Questionguy101]

Does a 5th year undergraduate student qualify for the American Opportunity Credit?

During the previous 4 years, his parent has only claimed his education credit for 1 year. Does that mean they can still claim another 3 years as long as the child is still attending his undergraduate courses?

[Gretel]

I just had a similar question myself and checked on this. Here is how I understand the AOC:

As long as the student hasn't completed the first four years of college as of 1/1/10 this credit can be claimed. This goes by what the college classifies the student at. Contrary to the HOPE credit this credit can be claimed for more than four year. I did not see any limitation as the HOPE credit had.

My client does this half time (just enough to be considered more than half) and 2010was the 5th year of college and she is still a sophomore. As I see it she can claim the credit for as long as this credit is around and if it will be 10 years. I don't see her finish 4 years before that.

[Bill Tubbs]

4 years

AOC (incl. Hope Credit) can only be claimed 4 times for the same student.

[BP.]

I As I see it she can claim the credit for as long as this credit is around and if it will be 10 years.

Have a look at pub 17, p. 230- " AOC- Number of tax years credit available- Only for 4 tax years per eligible student."

[rgtaxservice]

...

25A(i)(b)(2)(C) - (C) Credit allowed only for first 4 years of postsecondary education
The _______Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution.

Don't confuse a calendar year with an academic year. If a student first attended Fall 2010 and Sprng 2011, that's two academic periods in two years. Even though many would consider it a 'freshman' year'. That's why the 1098-T's have the box regarding Jan-Mar tuition of the following year.


If the clients only claimed an Ed Credit in the last four years they should amend. It's the Lifetime credit from here on out.

[Gretel]

Have a look at pub 17, p. 230- " AOC- Number of tax years credit available- Only for 4 tax years per eligible student."

I stand corrected. I only looked in TTB and did not see the limitation for 4 years per eligible student.