American Opp Credit for grad school costs

[LCP]

Student finished her fourth year of undergrad in May 2011. Until books started to qualify there were no eligible expenses since scholarships covered her tuition. Therefore she still has another year of AOT credit.

The way I read it, books for grad school this fall are eligible expenses.

Anybody disagree?

[spanel]

Student finished her fourth year of undergrad in May 2011. Until books started to qualify there were no eligible expenses since scholarships covered her tuition. Therefore she still has another year of AOT credit.

The way I read it, books for grad school this fall are eligible expenses.

Anybody disagree?

If they are now in Grad school, they are no longer eligilbe for the AO credit. They would have to take the Lifetime learning credit, which only tuition and fees are deductible, no books.

Chris

[Jesse]

If memory serves me correct

I would agree with LCP

If the student had not completed the first 4 years of postsecondary education before 2011 they would qualify for both the spring and fall semester, even though the fall semester would be the 5th year.

All of the qualified education expenses paid for the 2011 spring semester and fall semester are taken into account in calculating any American opportunity credit.

I came across this on Q & A's for the AOC but I can't seem to locate it. If I find the link I'll post it.

[appelman]

How about this:

http://www.irs.gov/newsroom/article/0,,id=211309,00.html

Note Q15.

[Gary2]

http://www.irs.gov/newsroom/article/...211309,00.html

Note Q15.

An even clearer example is in Pub. 970, page 12, example 2.

[LCP]

An even clearer example is in Pub. 970, page 12, example 2.

This one says yes, grad school books qualify.

I read Q15 referenced above to suggest that they don't.

[appelman]

I agree.

If student qualifies for AOC, then books, etc. are allowed.