American Opportunity Credit

The American Opportunity Credit is a tax benefit that helps students and their families pay for higher education expenses. It provides a maximum annual credit of up to $2,500 per eligible student, covering tuition, fees, and course materials. You can claim this credit for the first four years of post-secondary education, and it is partially refundable, meaning you can receive up to $1,000 even if you owe no taxes. To qualify, students must be enrolled at least half-time and meet other income and enrollment criteria. The credit aims to make college more affordable by reducing your tax bill.