What is the American Opportunity Credit?

What is the American Opportunity Credit?

The American Opportunity Credit is an Education Credit on your federal return that provides up to $2,500 for each eligible student per year.

It can be claimed for the first four years of post-secondary education.

The term "qualified tuition and related expenses" includes expenditures for "course materials." For this purpose, the term "course materials" means books, supplies, and equipment needed for a course of study whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.

Forty percent of this is a refundable credit, which means that you can receive up to $1,000 even if you owe no taxes.

However, none of the credit is refundable if the taxpayer claiming the credit is a child

• (a) who is under age 18 (or a student who is at least age 18 and under age 24 and whose earned income does not exceed one-half of his or her own support),
• (b) who has at least one living parent, and
• (c) who does not file a joint return.

For additional information, please refer to the following link:

American Opportunity Credit