DegreeCalc
FederalFederalRenewable

American Opportunity Tax Credit

The American Opportunity Tax Credit provides up to $2,500 per student per year for the first four years of higher education. It covers 100% of the first $2,000 and 25% of the next $2,000 in qualified education expenses.

Award Amount

$2,500

per year

Deadline

Tax filing deadline

application due

GPA Required

None

minimum

Field of Study

Any

eligible majors

Eligibility Checker

Enter your information below to check if you meet the basic eligibility criteria for the American Opportunity Tax Credit.

Requirements Checklist

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Application Tips

1

Up to 40% is refundable ($1,000)

2

Claim on Form 8863 with tax return

3

Covers tuition, fees, and course materials

4

Cannot also claim Lifetime Learning Credit for same student

Scholarship Value Calculator

Annual Value

$2,500

per year

4-Year Total Value

$10,000

if renewed each year

Loan Interest Saved

$3,500

at 6.5% over 10 years

Pro tip: Every dollar in scholarship funding saves roughly $1.35 compared to borrowing the same amount through student loans at 6.5% interest over a 10-year repayment period.

Eligibility Details

EligibilityStudents in their first four years of higher education with modified AGI under $90,000 ($180,000 for joint filers)
DemographicsAll students
Field of StudyAny
Typefederal
RenewableYes — renewable annually

Frequently Asked Questions

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