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References. External links. American Opportunity Tax Credit. The American Opportunity Tax Credit is a partially refundable tax credit first detailed in Section 1004 of the American Recovery and Reinvestment Act of 2009. [1] The act specifies: Provisions were originally specific to tax years 2009 and 2010, later extended, and finally made ...
The American Opportunity Tax Credit eases that burden with an annual tax credit of up to $2,500 for tuition and fees for the first four years of higher education, and it’s available to students ...
The American opportunity credit is for up to $2,500 a year (based on at least $4,000 spent on tuition, books and fees) for the first four years toward an undergraduate degree.
The American Opportunity Tax Credit can be claimed by some students on the 1098-T tax form. “Students might be eligible for the American Opportunity Tax Credit if you're still an undergrad. The ...
American Opportunity Tax Credit (AOTC) The American Opportunity Tax Credit (AOTC) was part of the American Recovery and Reinvestment Act, which was signed into law in February 2009. The AOTC replaced the Hope Scholarship credit for Tax Years 2009 and 2010, increased the benefits for nearly all Hope credit recipients and many other students by ...
Paying college expenses directly from a 529 account may reduce eligibility for the American Opportunity Tax Credit, due to IRS coordination restrictions. To claim the full credit (in addition to meeting other criteria, such as income limits), $4,000 of college tuition and textbook expenses per year should be paid from non-529 plan funds.
The American opportunity credit is targeted toward students pursuing formal degree programs. The lifetime learning credit, on the other hand, can be used for other types of training and education.
Some credits are available only to individuals, such as the child tax credit for each dependent child, American Opportunity Tax Credit for education expenses, or the Earned Income Tax Credit for low income wage earners. Some credits, such as the Work Opportunity Tax Credit, are available to businesses, including various special industry incentives.