{"id":6832,"date":"2023-02-27T09:49:59","date_gmt":"2023-02-27T09:49:59","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6832"},"modified":"2023-02-27T09:50:19","modified_gmt":"2023-02-27T09:50:19","slug":"american-opportunity-tax-credit","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/","title":{"rendered":"American Opportunity Tax Credit Calculator"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1536x864.webp 1536w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit.webp 1920w\" sizes=\"(max-width: 1122px) 100vw, 1122px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1024x576.png\" height=\"631\" width=\"1122\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1536x864.png 1536w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/american-opportunity-tax-credit.png 1920w\" sizes=\"(max-width: 1122px) 100vw, 1122px\" class=\"wp-image-6837 sp-no-webp\" alt=\"American opportunity tax credit\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>The American Opportunity Tax Credit is a tax credit that provides financial assistance to taxpayers paying for higher education expenses, such as tuition and textbooks. The AOTC offers significant financial assistance to taxpayers paying for higher education expenses. The tax credit can reduce the out-of-pocket costs of attending college or graduate school, making it easier for students and their families to afford the expense.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d99fc1f365\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d99fc1f365\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#American_Opportunity_Tax_Credit_Calculator\" title=\"American Opportunity Tax Credit Calculator\">American Opportunity Tax Credit Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#How_much_is_tax_credit_under_American_Opportunity_Tax_Credit\" title=\"How much is tax credit under American Opportunity Tax Credit?\">How much is tax credit under American Opportunity Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#What_is_the_American_opportunity_tax_credit_income_limits\" title=\"What is the American opportunity tax credit income limits?\">What is the American opportunity tax credit income limits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#What_are_American_opportunity_tax_credit_phaseout_income_limits_for_2023\" title=\"What are American opportunity tax credit phaseout income limits for 2023 ?\">What are American opportunity tax credit phaseout income limits for 2023 ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#Is_American_Opportunity_Tax_Credit_refundable\" title=\"Is American Opportunity Tax Credit refundable?\">Is American Opportunity Tax Credit refundable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#Who_is_eligible_for_the_AOTC_tax_Credit\" title=\"Who is eligible for the AOTC tax Credit?\">Who is eligible for the AOTC tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#What_are_American_opportunity_tax_credit_qualified_expenses\" title=\"What are American opportunity tax credit qualified expenses?\">What are American opportunity tax credit qualified expenses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#How_to_claim_the_AOTC_American_Opportunity_Tax_Credit\" title=\"How to claim the AOTC American Opportunity Tax Credit\">How to claim the AOTC American Opportunity Tax Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.irstaxapp.com\/american-opportunity-tax-credit\/#Can_you_claim_Lifetime_Learning_Credit_and_also_AOTC\" title=\"Can you claim Lifetime Learning Credit and also AOTC?\">Can you claim Lifetime Learning Credit and also AOTC?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"American_Opportunity_Tax_Credit_Calculator\"><\/span>American Opportunity Tax Credit Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<iframe loading=\"lazy\" width=\"100%\" height=\"700\" layout=\"responsive\" sandbox=\"allow-scripts allow-same-origin\" src=\"https:\/\/gsheetpress.com\/calculator?id=1677490882537\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_much_is_tax_credit_under_American_Opportunity_Tax_Credit\"><\/span>How much is tax credit under American Opportunity Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>tax credit under AOTC is $2,500 per eligible student.<\/strong> The tax credit is allowed for qualified expenses incurred during the first four years of undergraduate and graduate studies. It varies with the Modified Adjusted Gross Income of the taxpayer because of phase out rule.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_American_opportunity_tax_credit_income_limits\"><\/span>What is the American opportunity tax credit income limits?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The income requirements for the AOTC are based on the taxpayer&#8217;s&nbsp;<a target=\"_blank\" href=\"https:\/\/www.irstaxapp.com\/question\/5829-how-is-magi-different-from-agi\/\" rel=\"noreferrer noopener\">modified adjusted gross income<\/a>&nbsp;(MAGI).For the tax year 2023, taxpayers with a MAGI below between $80,000 and $90,000 (or $160,000 and $180,000 for married couples filing jointly). Taxpayers with a MAGI above these thresholds are not eligible for the credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_American_opportunity_tax_credit_phaseout_income_limits_for_2023\"><\/span>What are American opportunity tax credit phaseout income limits for 2023 ?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For both the tax year 2022 and 2023, the phaseout income limits are as under :<\/p>\n\n\n\n<ul><li><strong>The<\/strong> Single taxpayer, American opportunity tax credit phaseout begins for Single taxpayers with a MAGI exceeding $80,000 and completely exhausts at $90,000&nbsp;<\/li><li>For <strong>married couples filing jointly)&nbsp;<\/strong>phaseout begins at $160,000 and ends completely at $180,000.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_American_Opportunity_Tax_Credit_refundable\"><\/span>Is American Opportunity Tax Credit refundable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unlike other tax credits and deductions, the AOTC is a partially refundable tax credit. It means even if you do not owe taxes, you may still be eligible to receive a portion of the credit as a refund.If the <strong>AOTC tax credit <\/strong>is more than the amount of tax you owe , you will get <strong>refund of 40 percent of the balance amount<\/strong> of the credit (up to $1,000).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_eligible_for_the_AOTC_tax_Credit\"><\/span>Who is eligible for the AOTC tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To be eligible for the AOTC, you must fulfill the following criteria:<\/p>\n\n\n\n<ul><li>You must pay for qualified education expenses for your education, spouse, or dependent.<\/li><li>You or the student for whom you claim credit must be enrolled at least half-time in a degree or certificate program at an eligible educational institution.<\/li><li>The student must not have completed the first four years of post-secondary education before the relevant tax year.<\/li><li>You must have income below a specified limit.(explained separately)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_American_opportunity_tax_credit_qualified_expenses\"><\/span>What are American opportunity tax credit qualified expenses?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following expenses are considered qualified for the American opportunity tax credit claim.<\/p>\n\n\n\n<ol><li>Tuition fees charged by institutions<\/li><li>Enrollment fees charged by institutions<\/li><li>Cost of course materials, whether bought from Institutions or elsewhere<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_claim_the_AOTC_American_Opportunity_Tax_Credit\"><\/span>How to claim the AOTC American Opportunity Tax Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>First, obtain a <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1098t.pdf\" target=\"_blank\" rel=\"noopener\">Form 1098-T<\/a>, &#8220;Tuition Statement,&#8221; from the institution where the student is enrolled. This form will provide information about the amounts paid for qualified education expenses during the tax year.Then, complete <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f8863.pdf\" target=\"_blank\" rel=\"noopener\">Form 8863<\/a>, &#8220;Education Credits,&#8221; and include it with your tax return.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_you_claim_Lifetime_Learning_Credit_and_also_AOTC\"><\/span>Can you claim Lifetime Learning Credit and also AOTC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The answer is No. You cannot claim both. The credits -the AOTC and the <a href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/\">Lifetime Learning Credit-<\/a> are in the same tax year; therefore, you must choose the credit best suited to you in your existing circumstances.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The American Opportunity Tax Credit is a tax credit that provides financial assistance to taxpayers paying for higher education expenses, such as tuition and textbooks. The AOTC offers significant financial assistance to taxpayers paying for higher education expenses. The tax credit can reduce the out-of-pocket costs of attending college or graduate school, making it easier [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6837,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6832"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=6832"}],"version-history":[{"count":5,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6832\/revisions"}],"predecessor-version":[{"id":6839,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6832\/revisions\/6839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/6837"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=6832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=6832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=6832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}