American Opportunity Credit

American Opportunity Credit

A tax credit in the United States making a dollar-for-dollar reduction in the tax liability of a postsecondary student equivalent to 100% of tuition and education fees, up to $2,500. Up to 40% of the credit is a refundable tax credit. Certain income limits apply to a student's eligibility. It was instituted in 2009 and is scheduled to expire in 2012.
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Depending on the criteria, a student may use the American Opportunity Credit of up to $2,500 or the Lifetime Learning Credit of up to $2,000.
Common tax mistakes to avoid in 2018
In the past, there have been erroneous education claims, particularly with respect to the refundable portion of the American Opportunity Credit.
Paying for higher education
American opportunity credit is a per-student, partially-refundable tax credit.
Seven tax breaks for young adults
Tip #10: Take advantage of the American Opportunity Credit (AOTC).
Who needs to file a 2014 tax return?
Among the others: the lifetime learning credit or the American Opportunity Credit.
Enjoy the breaks; Tax credits, deductions may not last
There are two types of credits: the American Opportunity Credit, which is available through 2017 and is limited to the first four years of post-secondary education, and the Lifetime Learning Credit which provides credit for years after the first four years of post-secondary schooling and can be used for graduate studies.
Lessons in education credits can give you a tax break
Current refundable tax credits for individuals include the additional child credit, the earned income credit, the health coverage credit, and the American opportunity credit.
Tax credit or income transfer? It is a good thing when taxes are reduced. But when refundable tax credits provide taxpayers with more money than they paid in, that's a subsidy, not a tax cut
The Lifetime Learning Credit and the American Opportunity Credit, which is for degree or certificate programs only but allows up to $2,500 per student, per year, for the first four years of undergraduate school, cannot be claimed by the same person.
Finding money to go back to school
Students who attended school at least half time in 2012 may be eligible for the American Opportunity Credit that can amount to $2500.
Waldeck Tax Offering Special Rate for All College Students
In contrast, several tax credits intended for low-income families -- such as the Child Tax Credit, the Earned Income Tax Credit and the American Opportunity Credit -- were only extended for five years until 2017, something Greenstein described as "appalling.
Fiscal Cliff Deal Preserved 82 Percent of Bush Tax Cuts
Education credits such as the American Opportunity credit cover the first $2,000 of tuition and related costs and 25 percent of the next $2,000 of expenses.
Depreciate, defer & deduct: end of year tax planning
Therefore, the American Opportunity credit remains the primary tax credit available for higher education in 2011 and 2012.
Taking credits for higher education

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