What is American Opportunity Tax Credit?
In short
The American Opportunity Tax Credit is a credit of up to $2,500 per eligible student for qualified expenses in the first four years of postsecondary education: 100% of the first $2,000 and 25% of the next $2,000.
Key takeaways
- Up to 40% of it (as much as $1,000) is refundable.
- The student must be enrolled at least half-time in a program leading to a degree or credential.
- The same expenses can't be used for both it and the Lifetime Learning credit or a tax-free 529 distribution.
Where it's tested
REG: Filing Status, Credits & Alternative Minimum Tax — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which education credit is partially refundable?