What Is the American Opportunity Tax Credit (AOTC)?

What Is the American Opportunity Tax Credit (AOTC)?

The AOTC allows eligible taxpayers to claim up to $2,500 per eligible student per year for qualified education expenses during the first four years of postsecondary education.

• The credit is partially refundable—up to $1,000 of the credit can be refunded even if the taxpayer owes no tax.

• It covers 100% of the first $2,000 of qualified expenses and 25% of the next $2,000.