American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC) is a tax benefit that helps offset the cost of higher education for eligible students and their families. It provides a credit of up to $2,500 per student for qualified tuition, fees, and course materials paid during the first four years of college. The credit is partly refundable, meaning you can receive up to $1,000 even if you owe no taxes. The AOTC aims to make college more affordable by reducing your tax liability if you’re investing in post-secondary education.