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April 11, 2020
Question

Can I claim the American Opportunity Tax credit if I have been in college for over 4 years but don't have a BA? I got an AA and have been in my BA program for 3.5 years.

  • April 11, 2020
  • 1 reply
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I spent 2.5 years earning an AA at my local community college.  Since then, I have come to a 4-year institute and spent 3.5 years here (as of the end of 2019).  I am wondering how to answer the "Had You Earned Four Years of College Credit?" question.  Any advice would be greatly appreciated.

1 reply

April 11, 2020

It depends.

 

You can only claim the American Opportunity Credit for four years.  Once you claim it for four years, you cannot use it anymore.  

 

You should review your tax returns to see how many years you claimed it in the past.  It is a credit per student and is limited to 4 years in total, regardless of who claimed the credit.   

 

If it has already used in the past four years, you will only be able to use the Lifetime Learning Credit or Tuition & Fees deduction.

 

American Opportunity Credit is available for the first 4 years of college while working towards a degree.  The maximum credit is $2,500 per eligible student, must be enrolled at least half time for at least 1 semester, and up to $1,000 can be refunded to you. 

 

Lifetime Learning Credit is not limited by the number of years in school and can be used for undergrad, graduate, and professional degree courses, including ones to improve job skills. 

The maximum credit is $2,000 per tax return, can be used when only taking 1 class, you don't need to be working towards a degree, and none of the credit is refundable. 

 

Chart comparing credits 

 

Tuition & fees deduction 

 

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