 Alright, let's break them down. Completion of first four years. A student has completed the first four years of post-second education if the institution at which the student is enrolled awards the student four years of academic credit at that institution. Of course work completed by the student before 2022. This student generally wouldn't be an eligible student for the purposes of the American Opportunity Credit. Now for some schools, it's going to be structured that's the way the school is traditionally structured in a college type of situation. Other schools might not be as formally structured in that kind of way but they're going to have to comply to some degree to that structure because that's how the whole educational kind of system is basically set up. So you want to be talking to the institution if there's like confusion on exactly what that means with regards to that particular institution. So exception, any academic credit awarded solely on the basis of the student's performance on proficiency examinations is disregarded in determining whether the student has completed four years of post-secondary education. So you could have some situations where they basically just based on their academics have basically cleared a year or something like that and you would think then that might limit their ability to take the credit versus other people because they're excelling and that shouldn't shouldn't be a detriment to be excelling you would think. So you have an exception there the general idea but I think most people most likely are in a situation where it might take them you know longer because they're they're working part-time or something like that but in any case enrolled at least half-time so what does it mean to be enrolled at least half-time? So a student was enrolled at least half-time if the student was taking at least half the normal full-time workload for his or her course of study. Now what does that mean? It is once again defined by the institution generally in terms of what it means to be a full-time and half-time so so you can have to talk to the institution oftentimes the education the college or whatever to to make sure you're in compliance with that. The students the standard for what is half of the normal full-time workload is determined by each eligible educational institution however the standard may not be lower than any of those established by the U.S. Department of Education under Higher Education Act of 1965 example. So Mack graduated from high school in June 2021 in September. Mack enrolled in an undergraduate degree program at College U and attended full-time for both the 2021 fall and 2022 spring semesters. For the 2022 fall semester Mack was enrolled less than half-time because Mack was enrolled in an undergraduate degree program on at least a half-time basis for at least one academic period that began in 2021 and at least one academic period that began in 2022. Mack is an eligible student for tax years 2021 and 2022 including the 2022 fall semester when Mack enrolled at at College U on less than a half-time basis. All right example number two after taking classes at College V a part-time basis for a few years Shelly became a full-time student for the 2022 spring semester. College V classified Shelly as a second semester senior fourth year for the 2022 spring semester and as a first-year semester graduate student fifth year for now graduate students so after the fourth year of the traditional four-year frame according to the school now fifth year for 2022 fall semester. So because College V didn't classify Shelly as having completed the first four years of post-secondary education as of the beginning of 2022 Shelly is an eligible student for tax year 2022 therefore the qualified education expenses paid for the 2022 spring semester education for the semester and the 2022 fall semester are taken into account in figuring the American opportunity for 2022. Example three during the 2021 fall semester Larry was a high school student who took classes on a half-time basis at College X. Larry wasn't enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. So because Larry wasn't enrolled in a degree program at College X during 2021 Larry wasn't an eligible student for the tax year so in other words he's taken a class possibly just to to take the class but it's not going towards a degree or something like that is I believe the general idea. So example number four the facts are the same as in example three during 2022 spring semester Larry again attended College X but not as a part part of a degree program. Larry graduated from high school out in June 2022 so for the 2022 fall semester Larry enrolled as a full-time student in College X as part of a degree program and College X awarded Larry credit for the prior coursework at College X because Larry was enrolled in a degree program at College X for the 2022 fall term on at least a half-time basis Larry is an eligible student for all tax year 2022 therefore the qualified education expenses paid for classes taken at College X during both the 2022 spring semester during which Larry wasn't enrolled in a degree program and the 2022 fall semester are taken into account in figuring any American opportunity credit. Example five D graduated from high school in June 2021 in January 2022 D enrolled in a one-year post-secondary certificate program on a full-time basis to obtain certificate as a travel agent so D completed the program in December 2022 and was awarded a certificate in January 2023 D enrolled in a one-year post-secondary certificate program on a full-time basis to attain a certificate as a computer programmer so D is an eligible student for both tax years 2022 and 2023 because the degree requirement uh the work the workload requirement and the year of study requirement for those years have been met. Alright let's take a look at a flow chart those are always great here who is an eligible student for the American opportunity credit so we got our little questionnaire flow chart that you can picture in your mind when these questions come up so first did the student complete the first four years of post-secondary education before beginning uh before the beginning of the tax year this is for the American opportunity credit not the lifetime learning credit which if you don't qualify for this one you might be able to default to that one so if the question is no we move on if yes the student isn't an eligible student here but maybe lifetime learning credit so we're gonna say no next one was the American opportunity credit claimed in at least four prior years for this student so did they claim it for that particular student I don't care where you claimed it was it claimed on your parents return on their return or whatever but it was tied to that particular student if the answer is yes then no for the American opportunity but possibly lifetime learning if the answer is no we move on was the student enrolled at least half time in a program leading to a degree certificate or other recognized educational credential for at least one academic period beginning in 2022 or the first three months of 2023 if the qualified expenses were paid in 2022 so then if yes to that one we finally go to the last item is the student free of any federal or state felony convictions for possessing or distributing a controlled substance as of the end of tax year 2000 of the tax year we don't want you guys on the college campuses you mess up all the college you're trying to learn over here you guys are over here selling drugs and then taking tax credits for it's ridiculous so you have to pass that you can't do that can't be on that one so then so so if you say yes is is the student free are you free of any felony conditions if the answer is yes the student is an eligible student and then you can move from there to calculate the credit which we'll talk about in future presentations