American Opportunity Tax Credit
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Definition
An education credit for qualified undergraduate expenses, partially refundable, with phaseouts and a four-year limit per student.
American Opportunity Tax Credit in plain English
A family with an undergraduate paying tuition wants the richer education credit and maybe a refundable piece back. The American Opportunity Tax Credit covers qualified undergraduate expenses, is partially refundable, phases out by income, and is limited to four years per student. Lifetime Learning Credit is the cousin with different percentages and eligibility. Correct math on the wrong credit is still wrong. Match AOTC's undergraduate focus and four-year limit to the stem before you claim the larger benefit.
Practice American Opportunity Tax Credit
What is the maximum American Opportunity Tax Credit (AOTC) they can claim?
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