American Tax Opportunity

American Tax Opportunity

by Lynn Kuser-Trader -
Number of replies: 0

The American opportunity tax credit (AOTC) is a credit for qualified

education expenses paid for an eligible student for the first four years of

higher education. You can get a maximum annual credit of $2,500 per

eligible student. If the credit brings the amount of tax you owe to zero,

you can have 40 percent of any remaining amount of the credit (up to

$1,000) refunded to you.

The amount of the credit is 100 percent of the first $2,000 of qualified

education expenses you paid for each eligible student and 25 percent of the

next $2,000 of qualified education expenses you paid for that student.

https://www.irs.gov/credits-deductions/individuals/aotc

The school will issue 1098T's at the end of January to help you document your expenses

so that your tax preparer can see what might help you

Good Luck

Lynn