The American Opportunity Tax Credit (AOTC)
The American Opportunity Tax Credit (AOTC) is a partially refundable tax credit applicable to eligible undergraduate students for the first four years of college. Students who meet the criteria could receive an annual credit of $2,500 for qualified education expenses. It is recommended that students keep record of their expenses to be eligible.
A brief overview of the AOTC
- A maximum credit of $2,500 for out-of-pocket expense on course materials, fees, and tuition.
- Undergraduate students enrolled full-time or half-time in a degree or credential program are eligible to receive the AOTC for four years.
- Available to students earning less than $90,000 and joint-filers earning less than $180,000 in income.
Students, including graduate students, who do not qualify for the AOTC may be eligible for the Lifetime Learning Tax Credit (LLC). See IRS Publication 970 to learn more.
Click the button below to visit textbookaid.org and learn more about key features, criteria and benefits of the AOTC. Stay tuned for further updates on the AOTC.