Education Credits

[Earl]

Client started college in the fall of 2006. Hope credit taken for that year.
Hope credit also taken in 2007.
Not eligible for Hope Credit in 2008 so took Lifetime Learning Credit.
AOC available in 2009 and was taken.
2010 client was a senior as of 1/1/2010 and completed first four years of college
by May 2010.

Client is still in school and says that she will not be eligible for degree until May 2012.
Classified on 1098T as undergraduate.

Hope 2006
Hope 2007
LLC 2008
AOC 2009

Is client eligible for AOC for 2010? If client eligible for credit can credit be claimed for
whole year or just what is paid up to May when 4 years completed.

[erchess]

Bump

I think she can claim AOC for the whole year since this is only year four for her of Hope and AOC but let's see what the real experts have to say.

[solomon]

I vote with erchess.

[Gretel]

Me too. Let's have a beer for so much agreement.

[peggysioux]

AOC Credit

I would tend to think year five of college would not be eligible for the AOC credit. Pub 970 states:

"Completion of first 4 years. A student who was awarded 4 years of academic credit for postsecondary work completed before 2010 has completed the first 4 years of postsecondary education. This student generally would not be an eligible student for purposes of the American opportunity credit. "

I hope I am incorrect as my daughter is in her five year of college and I would love to take the AOC credit.

[dtlee]

I would tend to think year five of college would not be eligible for the AOC credit. Pub 970 states:

"Completion of first 4 years. A student who was awarded 4 years of academic credit for postsecondary work completed before 2010 has completed the first 4 years of postsecondary education. This student generally would not be an eligible student for purposes of the American opportunity credit. "

I hope I am incorrect as my daughter is in her five year of college and I would love to take the AOC credit.

This depends on what you might mean by "year five."

I, too, rely on Publication 970 for this stuff since it is so convoluted.

On page 12 of Publication 970, they identify an eligible student. Assuming the other three qualifications are met, this is how they identify the first four years:

The student had not completed the first 4 years of
postsecondary education (generally, the freshman,
sophomore, junior, and senior years of college)
before 2010.

So, in the scenario that was posted by the OP, I would say that even though this is the fifth calendar year of the student having postsecondary education, they had not completed their fourth year by the start of 2010 and can take the AOC>

[oceanlovin'ea]

Agree with echress, solomon and gretel

Since school starts in the fall of the year it really takes 5 calendar years to complete 4 years of post secondary education.

That being the case I would agree AOC would be applicable this year.

Linda, EA