american opportunity tax credit

You can both claim the more generous American Opportunity Credit (AOC) for 2024.

Even though she is a grad student, she can still claim it because she had not completed her undergrad work before 2024 and because it had not been claimed before (by either her or her parents).

You can claim the AOC because you have  not yet completed four years of post secondary education (no bachelors degree) and because it has not been claimed before.

You and your parents may want to consider them filing amended returns for past years to claim it, particularly if you will complete you bachelors degree before being able to claim it 4 times yourself. 

It sounds like you both could be eligible for either credit. 

You would be eligible for either since

 the credit has not been used four times in your name and not four times for her. 

You are working on your first four years of the degree (Freshman, Sophomore Junior Senior) and she was still working on hers n 2024

The credit would be for each student.

Enter your 1098-T and continue through the interview.

Remember she DID NOT finish her undergrade BEFORE 2024 and ALL her expense count (you don't need to separate Undergrad from Grad expenses) FOR 2024. 

IRS Pub 970

@wildn01