Step-by-step for the American Opportunity Tax Credit (AOTC)

 

Step-by-step for the American Opportunity Tax Credit (AOTC)

Use the AOTC when the student is in the early years of college or eligible vocational schooling.

What it is

The AOTC is worth up to $2,500 per eligible student. Part of it is refundable, meaning a person may be able to get up to $1,000 back even if they owe little or no tax. 

When it applies

The AOTC is only available for the first four years of postsecondary education, and the student must be pursuing a degree or other recognized education credential.