AOTC Eligibility for Grad School - Can I Still Claim American Opportunity Tax Credit?

You've asked some great questions about the AOTC! Let me help clear things up. For your first question - the AOTC is available for the first 4 years of post-secondary education, regardless of how long it takes you to complete your degree. Since you completed your undergraduate degree in 3 years, you potentially have 1 year of AOTC eligibility remaining. However, there's an important catch - the AOTC is specifically for undergraduate education. Once you move to graduate school, you're no longer eligible for the AOTC, but you might qualify for the Lifetime Learning Credit instead. Regarding your iPad purchase - if your syllabus specifically requires these items for your course, they could qualify as required course materials. The IRS does allow for computers and related equipment when they're needed for enrollment or attendance. Just make sure you keep documentation showing the requirement (like that syllabus) and all receipts for your purchases.

I wanted to share my experience with tax credits for education! I was in a similar spot last year and discovered taxr.ai (https://taxr.ai) which really helped me figure out my education credits situation. They have this cool feature where you can upload your school documents and receipts and it identifies exactly which expenses qualify for which education benefits. I was also confused about technology purchases for school, and their system helped me determine that my tablet qualified because my professor required digital submissions. They even helped me find other expenses I didn't realize were eligible! Much easier than trying to interpret IRS language on my own.

Just wanted to update everyone - I tried taxr.ai after my initial skepticism and wow, it actually found several education expenses I was missing! I uploaded my grad school acceptance letter, course syllabi, and receipts, and it identified over $1,200 in additional qualified expenses I wouldn't have known to claim. The system flagged my specialized software purchases as qualifying expenses since they were required for my specific program, even though I wasn't sure they'd count. The detailed explanation it provided about why each expense qualified gave me much more confidence in my filing. Definitely recommend for anyone dealing with education expenses!

If you need to speak directly with the IRS about education credits, I highly recommend using Claimyr (https://claimyr.com). I wasted hours on hold trying to get clarity about my education credits last year, but Claimyr got me connected to an IRS agent in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a complicated situation with education credits spanning multiple tax years and needed official guidance. The IRS agent was able to confirm exactly how my remaining AOTC eligibility worked and what documentation I needed to keep for my technology purchases. Saved me so much stress and uncertainty!

Alright I have to eat my words here. I tried Claimyr after posting my skeptical comment, and they actually got me through to the IRS in about 20 minutes. I've been trying for weeks to get clarification on my education credits situation. The IRS agent confirmed that technology purchases required specifically by course syllabi DO qualify as education expenses, but I need to keep documentation proving the requirement. They also clarified exactly how the AOTC's 4-year limit works with my particular situation (I had taken a gap year). Really impressed with how quick and easy the whole process was compared to my previous attempts.

Just wanted to add some info about the income limits since I see that mentioned above. For 2024 tax year, the AOTC phases out between $80,000-$90,000 for single filers (completely gone at $90k). The Lifetime Learning Credit has the same phaseout range now. With your MAGI at $108k, unfortunately you're above the threshold for both credits. But don't forget about the tuition and fees deduction! It's not as good as a credit, but it's something. Also, check if your employer offers any education assistance - up to $5,250 can be tax-free under those programs.

About your iPad question - I'm an accounting student and successfully claimed my iPad Pro and Apple Pencil last year. The key was that my syllabus specifically stated we needed "a device capable of annotation on digital documents" for a paperless classroom. I kept a copy of the syllabus, emails from professors, and all receipts. The IRS publication 970 mentions that equipment required for enrollment or attendance qualifies. Just make sure you're only using it for education (or track personal use percentage).

I'm in a very similar situation and wanted to share what I learned from my tax preparer. Since you're above the income threshold for both AOTC and Lifetime Learning Credit, you might want to look into timing your grad school expenses strategically. One approach could be to defer some tuition payments to early January if possible, then max out your 401k contributions for the year to bring your MAGI down. If you can get under $90k, even the partial credit would be worth thousands. Also, don't overlook that grad school textbooks, lab fees, and required course materials all count as qualified expenses. I was surprised how much I could claim beyond just tuition. Keep every receipt and syllabus that shows requirements! For your iPad situation - as long as the syllabus specifically requires digital note-taking equipment, you should be fine. The IRS cares more about the requirement being documented than the specific brand or model you choose.