At a glance
- American Opportunity Credit: up to $2,500 per student, first four years of college
- Up to $1,000 of it can be refunded even if you owe no tax
- Lifetime Learning Credit: up to $2,000 per return for any college or job-skills courses
- You'll need Form 1098-T from the school
American Opportunity Tax Credit (AOTC)
- For students in their first four years of college, enrolled at least half-time in a program leading to a degree or credential.
- Worth 100% of the first $2,000 of tuition, fees and required course materials, plus 25% of the next $2,000.
- 40% of the credit, up to $1,000, is refundable.
- Can be claimed for up to four tax years per student.
Lifetime Learning Credit (LLC)
- Worth 20% of up to $10,000 in tuition and fees, so up to $2,000 per return.
- No limit on the number of years, and the student doesn't need to be working toward a degree.
- Good for graduate school, community college classes or training to improve job skills.
- Not refundable.
Things to know
- You can't claim both credits for the same student in the same year.
- Both credits phase out at higher incomes.
- Scholarships and grants that paid tuition reduce the expenses you can use.
- Parents usually claim the credit for a student they claim as a dependent.
Check your 1098-T: it doesn't always show everything you paid. Bring receipts for required books and supplies too.
Want to be sure you get every credit?
Book a free 15-minute call. I'll check which credits fit your family before you file.
Schedule your free callOfficial IRS sources: IRS Publication 970 ↗ · IRS: Education credits ↗
Updated for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your eligibility is confirmed when your return is prepared.
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