American Opportunity Tax Credit

[Maniac Craniac]

The problem is, ironically but not surprisingly, tax officials and politicians don't really understand what they are talking about when it comes to education.

So, according to the WORDING of the tax code, you can use it for the first four years of college, but that does not count credit by exam, or for what is called "other recognized academic credential.". Following the wording of the code, one could test out of a Bachelor's and use the AOTC for a graduate degree, second bachelor's, etc.

However, the SPIRIT of the code seems to be that it is only for your first undergraduate degree and not to be used for anything beyond. Unfortunately, it is impossible to know for sure what way of thinking to follow. Nobody really knows what the heck the tax code is requiring of us at any point in time. Of course, it doesn't matter what you do, when the auditor comes he will tell you that you are wrong banghead