AOC Question

[Dave T]

I know the AOC is for the first four years of post secondary education but came across something that had me second guessing myself.

Student starts her Freshman year in 2008 and pays tiuition for first semester. In 2009 pays second semester Freshman and first semester Sophmore year etc. This patterrn continues through 2011 when she pays second semester Junior year and first semester Senior year. Then in 2012 pays second semester Senior year. Thus, even though it is for four year undergraduate degree there have been five payments if you will and therefore no credit for 2012 since she has already taken the credit in the four previous years.

Am I correct in this or am I msiing something?

Thank you

- Dave T

[Kea]

That is correct. You can then switch to Lifetime Learning Credit or Tuition and Fees.

[Lion EA]

Many people choose LLC for freshman year -- only one semester -- and save AOC for the next four full years, especially if they expect to have both undergrad and grad tuition that last year. However, if you pay for the fall semester in August or so and pay for the next spring semester this December, you have paid for a full year the first calendar year that the student starts college and probably need the AOC that year. (Then you are probably not paying anything during the spring semester your student graduates, already paid the previous December, and don't qualify for a credit or deduction of any kind, in spite of receiving a Form 1098-T telling you what they billed !!)

[BulldogTom]

The sad part is, in places like CA, they are holding the number of units a student may take to 14 (Sacramento State) so that it will take at least one extra semester to graduate. This is how the university system is balancing their budgets. If you can make a student stay for one extra year, you have effectively raised the tuition by 20% without raising tuition rates.

But the AOC is only good for 4 tax returns, regardless of the degree to which the student is aspiring.

Tom

Hollister, CA

[Jack from Ohio]

One semester of my kids' college cost me far more than enough to max out AOC. You only get 4 years, so it did not make a difference. Who gets a semester of college including books and required materials for less than $4,000?

[BulldogTom]

Community College. I have one there right now. Probably should have let it go the first year, just in case he does not finish in 4. Will pay the tuition for the final semester in Dec of his senior year to get that payment into the 4th year of the AOC.

Tom

Hollister, CA