Who qualifies for American Opportunity Tax Credit

The American opportunity tax credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.

The amount of the credit is 100 percent of the first $2,000 of qualified education expenses you paid for each eligible student and 25 percent of the next $2,000 of qualified education expenses you paid for that student.

To determine if you are eligible, the student must have the following: 

• Be pursuing a degree or other recognized education credential

• Be enrolled at least half time for at least one academic period* beginning in the tax year

• Not have finished the first four years of high education at the beginning of the tax years 

• Not have a felony drug conviction at the end of the tax year

Academic period can be semesters, trimesters, quarters, or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use the clock or credit hours and do not have academic terms, the payment period may be treated as an academic period. 

Please refer to irs.gov American Opportunity Tax Credit for more information