American Opportunity Credit

Understanding the American Opportunity Credit

American Opportunity Credit

The American Opportunity Credit was first made available in the 2009 tax year. The tax credit offsets the cost of tuition, fees, course-related books, supplies, and equipment for higher education by reducing tax liability or providing a partial refund. Many eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $90,000 or less, or $180,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels.

If you have questions about the American Opportunity Credit, these questions and answers might help. For more information, see American Opportunity Tax Credit: Questions and Answers.