American Opportunity Credit

The American opportunity tax credit (AOTC) is for qualified education expenses for an eligible student for the first four years of higher education. Many of those 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 $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit has been phased out for taxpayers with incomes above these levels.