American Opportunity Credit
Up to $2,500 per student
How Does the American Opportunity Credit Work?
Short answer: Yes: the AOTC covers 100% of the first $2,000 and 25% of the next $2,000 of tuition, fees, and books for four years of college.
Up to $1,000 is refundable; income limits are $90,000 single and $180,000 joint.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
American Opportunity Credit
Typical range: Up to $2,500 per student
Individuals / Personal Taxes
Yes: the AOTC covers 100% of the first $2,000 and 25% of the next $2,000 of tuition, fees, and books for four years of college.
Business justification
Yes: the AOTC covers 100% of the first $2,000 and 25% of the next $2,000 of tuition, fees, and books for four years of college. Up to $1,000 is refundable; income limits are $90,000 single and $180,000 joint.
Category
- Personal Tax Deductions