American Opportunity Credit

[Questionguy101]

The rule says you cannot claim the America Opportunity Credit for more than 4 tax years.

A student has claimed Hope credit in 2006 and 2007.
She claimed the Life Time Learning credit in 2008.
She claimed the America Opportunity Credit in 2009.

Has she used up all her 4 years eligibility already?

[AJsTax]

no

Not if she is still undergraduate.

[Questionguy101]

Not if she is still undergraduate.

How do they count the 4 years? I think the Hope credit years will be counted. I guess she is still eligible because the Life Time Learning credit year is not counted. Am I correct?

[solomon]

How do they count the 4 years? I think the Hope credit years will be counted. I guess she is still eligible because the Life Time Learning credit year is not counted. Am I correct?

Here is the Code for your question. §25A(b)

(2) Limitations applicable to Hope Scholarship Credit

(A) Credit allowed only for 2 taxable years

An election to have this section apply with respect to any eligible student for purposes of the Hope Scholarship Credit under subsection (a)(1) may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to such student for any 2 prior taxable years.

Of course, for the AOC it would be four years.

[Questionguy101]

Here is the Code for your question. §25A(b)



Of course, for the AOC it would be four years.

So to cut a long story short..claiming the Life Learning Credit does not count as one of the 4 eligible years...am I correct? Just want to confirm...

[solomon]

So to cut a long story short..claiming the Life Learning Credit does not count as one of the 4 eligible years...am I correct? Just want to confirm...

Yes - assuming still an undergraduate as AJ noted.

[Questionguy101]

Yes - assuming still an undergraduate as AJ noted.

Thank you.

[travis bickle]

Not correct

Yes - assuming still an undergraduate as AJ noted.

Assuming she has not completed the first four years of post-secondary education.

True enough, MOST undergraduate programs are four year programs, but I know a few (architecture, and pharmacy come to mind) that are very often FIVE year programs.

So, if she has completed four years of one of those [and others, possibly] she would NOT qualify.