Education tax credit

Your school determines what constitutes full time. You only need to be half time or more to qualify for the most generous American Opportunity credit (AOTC).  There is no credit hour limit for the Lifetime Learning Credit (LLC)

Q. My employer is paying in full for me to go to school. They handle everything  between the school and my Job as long as I am passes I have no expenses  including books. Am I able to file the education  credit?  

A. Yes, probably. But only if the amount paid was more than $5250, for the year. 

By law your employer can only give you $5250 maximum, tax free. If your tuition was less than that, and you employer reimbursed it all; then you are not eligible for a credit, because YOU didn't pay anything. 

 If you got more than $5250, the amount above $5250 is usually included in box 1 of  your w-2, as taxable income..  Since you have essentially paid tax on that part, it  is considered YOUR after tax money and the amount above $5250 can be used  to claim the tuition credit.

You can't claim an education tax credit (AOTC or LLC) since your employer fully covers tuition and books. The IRS only allows credits for out-of-pocket expenses.

Your school determines full-time status, not the IRS. Since your program follows a structured four-year plan, taking two courses per 10-week term with short breaks in between, you may still qualify as full-time. Schools typically define full-time based on credit hours per term, so check with your registrar’s office for confirmation.

IRS Resource Link:
Education Tax Credits

Employer Tuition Assistance (Pub 970)