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expenses that relate to any course of instruction or other education that involves sports, games, or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Comprehensive or bundled fees. Some eligible educa- tional institutions combine all of their fees for an academic period into one amount. If you don't receive or don't have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed earlier, contact the institution. The institution is generally required to make this allocation and provide you with the amount you paid for qualified education expenses on Form 1098-T. See Figuring the Credit, later, for more information about Form 1098-T. Who Is an Eligible Student? To claim the American opportunity credit, the student for whom you pay qualified education expenses must be an eligible student. This is a student who meets all of the fol- lowing requirements. • The student didn't have expenses that were used to figure an American opportunity credit in any 4 earlier tax years. • The student hadn't completed the first 4 years of post- secondary education (generally, the freshman, sopho- more, junior, and senior years of college) before 2021. • For at least one academic period beginning in 2021 (or the first 3 months of 2022 if the qualified expenses were paid in 2021), the student was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. • The student hasn't been convicted of any federal or state felony for possessing or distributing a controlled substance as of the end of 2021. These requirements are also shown in Figure 2-2. Completion of first 4 years. A student has completed the first 4 years of postsecondary education if the institu- tion at which the student is enrolled awards the student 4 years of academic credit at that institution for coursework completed by the student before 2021. This student gen- erally wouldn't be an eligible student for purposes of the American opportunity credit. Exception. Any academic credit awarded solely on the basis of the student's performance on proficiency ex- aminations is disregarded in determining whether the stu- dent has completed 4 years of postsecondary education. Enrolled at least half-time. 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. The standard for what is half of the normal full-time workload is determined by each eligible educational insti- tution. However, the standard may not be lower than any of those established by the U.S. Department of Education under the Higher Education Act of 1965. Example 1. Mack graduated from high school in June 2020. In September, he enrolled in an undergraduate de- gree program at College U, and attended full-time for both the 2020 fall and 2021 spring semesters. For the 2021 fall semester, Mack was enrolled less than half-time. Be- cause Mack was enrolled in an undergraduate degree program on at least a half-time basis for at least one aca- demic period that began in 2020 and at least one aca- demic period that began in 2021, he is an eligible student for tax years 2020 and 2021 (including the 2021 fall se- mester when he enrolled at College U on less than a half-time basis). Example 2. After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2021 spring semester. College V classified Shelly as a second-semester senior (fourth year) for the 2021 spring semester and as a first-semester graduate student (fifth year) for the 2021 fall semester. Because College V didn't classify Shelly as having completed the first 4 years of postsecondary education as of the begin- ning of 2021, Shelly is an eligible student for tax year 2021. Therefore, the qualified education expenses paid for the 2021 spring semester and the 2021 fall semester are taken into account in figuring the American opportu- nity credit for 2021. Example 3. During the 2020 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 pro- gram at College X because College X only admits stu- dents to a degree program if they have a high school di- ploma or equivalent. Because Larry wasn't enrolled in a degree program at College X during 2020, Larry wasn't an eligible student for tax year 2020. Example 4. The facts are the same as in Example 3. During the 2021 spring semester, Larry again attended College X but not as part of a degree program. Larry grad- uated from high school in June 2021. For the 2021 fall se- mester, Larry enrolled as a full-time student in College X as part of a degree program, and College X awarded Larry credit for his prior coursework at College X. Because Larry was enrolled in a degree program at College X for the 2021 fall term on at least a half-time basis, Larry is an eligible student for all of tax year 2021. Therefore, the qualified education expenses paid for classes taken at College X during both the 2021 spring semester (during which Larry wasn't enrolled in a degree program) and the 2021 fall semester are taken into account in figuring any American opportunity credit. Example 5. Dee graduated from high school in June 2020. In January 2021, Dee enrolled in a 1-year postse- condary certificate program on a full-time basis to obtain a certificate as a travel agent. Dee completed the program in December 2021 and was awarded a certificate. In Jan- uary 2022, she enrolled in a 1-year postsecondary certifi- cate program on a full-time basis to obtain a certificate as Page 18 Chapter 2 American Opportunity Credit