How do I figure out what year of post-secondary education I'm in for tax credit purposes?
Hey tax people! I need some help figuring something out about education credits. I've been taking classes at my local community college here and there for several years, but I've never officially enrolled in any specific degree program. I've also never claimed any education tax credits before on my returns. I'm trying to understand how the IRS determines what "year" of post-secondary education I would be considered in. Like, am I in my first year? Fourth year? Does it matter that I've been taking random classes but not pursuing a specific degree? This is important because I know some education credits are only available for the first four years of post-secondary education, so I want to make sure I understand where I stand before I file. Any insights would be super appreciated! Thanks in advance!
18 comments
Join the conversation
Emma Davis
The way the IRS determines your "year" of post-secondary education is primarily focused on whether you've completed the first four years of post-secondary education, especially for the American Opportunity Credit (AOC). Since you've been taking courses sporadically without being in a degree program, the key factor is whether you've completed the first four years of post-secondary education. The credit is calculated per student, not per degree. If you haven't been a full-time student for four academic years, you might still qualify for the AOC. For the Lifetime Learning Credit, this "year" distinction doesn't matter - it's available for any year of post-secondary education, including graduate courses or professional degree courses.
0 coins
Malik Johnson
•So if I've been taking classes part-time for like 6 years (maybe 2-3 classes per semester), but I've never actually completed enough credits for what would be considered 4 years of education, would I still qualify for the American Opportunity Credit? Or is it based on calendar years since I first started taking any classes?
0 coins
Emma Davis
•It's not based on calendar years since you first started taking classes. What matters is whether you've completed what would amount to four academic years of post-secondary education. If you've been taking classes part-time and haven't completed the equivalent of four academic years (typically around 120 semester credit hours for a bachelor's degree), you may still qualify for the American Opportunity Credit. The IRS looks at your academic progress rather than how many calendar years you've been taking courses.
0 coins
Isabella Ferreira
I had a similar situation and found this amazing tool at https://taxr.ai that helped me figure out my education credit situation. I was taking random classes at community college while working full-time and wasn't sure if I qualified for the American Opportunity Credit or Lifetime Learning Credit. The tool analyzed my transcripts and course history and helped clarify exactly what "year" I was considered to be in for tax purposes. It turns out the IRS cares more about your academic progress toward a degree (even if you're not officially in a degree program) rather than how many calendar years you've been taking classes.
0 coins
Ravi Sharma
•Did it handle your 1098-T forms too? My college sends these but they're super confusing and sometimes have amounts from the wrong year on them.
0 coins
NebulaNomad
•I'm a bit skeptical... how exactly does it determine what "year" you're in if you're not in a formal program? Does it just count credit hours or something?
0 coins
Isabella Ferreira
•Yes, it handles 1098-T forms really well! You just upload them and it extracts all the relevant information automatically, then helps you understand which boxes matter for which credits. It even caught that my school had reported some December 2023 payments on my 2024 form, which would have messed up my credits. For determining what "year" you're in without a formal program, it actually looks at your accumulated credit hours and compares them to standard degree progression. It basically converts your total credits into academic year equivalents - so for example, around 30 credits would be first year, 60 credits second year, and so on. It also asks about your enrollment pattern to get a more accurate picture.
0 coins
NebulaNomad
Ok I finally tried https://taxr.ai and I'm actually impressed. I've been taking classes for like 8 years (super part time) and was convinced I wouldn't qualify for any education credits anymore. The system analyzed my transcripts and showed I only had completed about 75 equivalent credit hours, which is roughly 2.5 years of full-time education. It explained that for the American Opportunity Credit, I'm still considered to be in my third year of post-secondary education based on academic progress, not calendar years! That means I can still claim the AOC which is worth way more than the Lifetime Learning Credit I thought I was stuck with. Saved me almost $1,000 in taxes!
0 coins
Freya Thomsen
For anyone struggling to reach the IRS about education credit questions (which can be super specific to your situation), I recommend trying https://claimyr.com. I spent days trying to get through to the IRS about my education credit situation since I was taking classes at two different institutions and wasn't sure how to count my "years." Claimyr got me connected to an actual IRS agent in about 20 minutes instead of the hours of hold music I was dealing with before. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to look at my specific situation and confirm exactly how they determine what year you're considered to be in.
0 coins
Omar Fawaz
•Wait, how does this actually work? Does it just call the IRS for you? I'm confused how this helps with the insane wait times.
0 coins
Chloe Martin
•This seems like BS honestly. Nothing can get you through to the IRS faster. I've tried calling at all different times and days and it's always 2+ hour waits if they don't just hang up on you.
0 coins
Freya Thomsen
•It doesn't just call the IRS for you - it uses an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent comes on the line, you get a call back so you can talk directly to them. So instead of sitting on hold yourself for hours, the system does the waiting for you. The reason the wait times are better is because their system can call at optimal times and stay on hold indefinitely, something most of us can't do. It's basically like having someone wait in line for you. It's not magic - the IRS wait times are still the same, but you're not the one sitting there listening to hold music for hours.
0 coins
Chloe Martin
I have to admit I was wrong about Claimyr. After my skeptical comment I decided to try it anyway because I was desperate for answers about my education credits. I was honestly shocked when I got a call back with an actual IRS agent on the line after about 35 minutes. The agent clarified that for education credits, they look at academic progress toward a degree equivalent, not just time spent taking classes. She explained that if I haven't completed what would be considered 4 academic years (about 120 semester hours), I can still qualify for the American Opportunity Credit even if I've been taking classes for more than 4 calendar years. Saved me a ton of confusion and potentially claiming the wrong credit!
0 coins
Diego Rojas
Quick tip from someone who works at a university financial aid office: ask your school for a "degree audit" or "academic progress report" even if you're not in a formal degree program. This will show how many credits you've earned and can help determine what "year" you'd be considered in for tax credit purposes. Generally: 0-30 credits = 1st year 31-60 credits = 2nd year 61-90 credits = 3rd year 91-120 credits = 4th year
0 coins
Anastasia Sokolov
•Do AP credits from high school count toward these totals? I had like 15 credits before I even started college but I'm not sure if those count toward my "years" for tax credit purposes.
0 coins
Diego Rojas
•AP credits from high school generally don't count toward your "years" for the American Opportunity Credit. The IRS is primarily concerned with post-secondary education you've completed after high school. The credit is specifically for "the first 4 years of post-secondary education," so your clock starts ticking when you begin taking college courses after high school graduation, regardless of any AP credits you may have earned beforehand.
0 coins
StarSeeker
Has anyone used TurboTax to figure this out? I'm in a similar situation and wondering if the software will help determine what "year" I'm in or if I need to figure it out myself beforehand.
0 coins
Sean O'Donnell
•TurboTax asks a series of questions about your education but doesn't really analyze your transcript or anything. Basically you have to already know what "year" you're in before you start. It asks if you've completed the first 4 years of post-secondary education and you just have to say yes or no.
0 coins