tfmonroe
Level 2

I have a client who got their bachelors degree many years ago and never took any tax deductions or tax credits for the related tuition and expenses back then.

Then, they decided to go and obtain a bachelors degree in a new and different major starting in 2019. They graduate in 2022. 

I am having trouble interpreting the below student qualification for form 8863/IRS Publication 970.  

"At the beginning of 2021, the student had not completed the first 4 years of postsecondary education (generally, the freshmen through senior years of college), as determined by the eligible educational institution."  

I am trying to determine whether the student is eligible for the American Opportunity Credit or has to get the Lifetime Learning Credit. I interpret the intent is to avoid a student taking the American Opportunity Credit for a masters degree or more than 4 years of bachelors degree.  If my interpretation is correct, the taxpayer can take the America Opportunity Credit for this year's tax return.  

I appreciate all assistance.

 

 

0 Cheers