Question Regarding eligibility for American Opportunity Credit

Forum|Forum|5 years ago
February 18, 2021
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I first attended University in 2014 and have been a part time student to this day. I have not yet received a bachelor's degree. I have never filled for this credit but would it still be possible to claim it for either this year or a previous tax year?

After researching the topic, I have a question regarding the following qualification: "As of the beginning of 2020, the student had not completed the first 4 years of postsecondary education
(generally, the freshman through senior years of college), as determined by the eligible educational institution"

Does this point state that an individual can only claim this credit before finishing their senior year or simply after 4 years have past after starting university?

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Best answer by Hal_Al

It is NOT simply 4 years have passed after starting college.

Simply stated: if you have not received a degree, you are still eligible.

Technically, "the 'first four years' refers to the amount of academic credit that has been awarded. Generally, it’s what schools use to classify students (junior, senior, etc.). A student who had not received more than four years of academic credit before 2020 would meet the year of study requirement under the American opportunity credit rules".

MinhT1

You have to be in the first four years of higher education (after starting university) to be eligible for the American Opportunity credit.

To be eligible for AOTC, the student must:

Be pursuing a degree or other recognized education credential
Be enrolled at least half time for at least one academic period* beginning in the tax year
Not have finished the first four years of higher education at the beginning of the tax year
Not have claimed the AOTC or the former Hope credit for more than four tax years
Not have a felony drug conviction at the end of the tax year

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