No one claimed an American opportunity credit or Hope scholarship credit … I also understand that I can claim $2500 credit for upto $4000 of my education expenses through American Opportunity Tax credit. Amount of Credit / Refundable Amount The maximum credit per student is $2,500 (100% of the first $2,000 and 25% of the next $2,000 of qualified education). My spouse will be going to grad school this year.

Assuming the total expense is approx $10000. The American Opportunity Tax Credit is equal to 100% of the first $2,000 in eligible expenses paid.

This tax credit, which is designated for taxpayers who pay qualified tuition and related expenses, can reduce taxable income and even create a … If you have expenses beyond $2,000 (who doesn’t), you can take a credit … The American opportunity tax credit (AOTC) allows taxpayers to save money on their taxes if they paid higher education expenses for themselves, a spouse, or a dependent. His parents claimed the American opportunity credit for Wilbert on their tax returns for 2014, 2015, and 2016. So this question is primarily for tax planning purpose. As an example, a taxpayer who can take the Child Tax Credit for two of their three children, the Child and Dependent Care Credit for one and the American Opportunity Credit and the Credit for Other Dependents for their oldest child, and the Lifetime Learning Credit for their own continuing education could see nearly $10,000 come off their 2018 tax bill when they file their return in 2019. I understand I can take an early distribution of upto $10000 from my IRA for qualified education expenses. Enter the American opportunity tax credit. American Opportunity credit information is entered in the Eligible student information statement on the Educate screen, in the Educate folder.

The credit is worth up to $2,500 per student but only for their first four years of higher education. Wilbert was eligible for the American opportunity credit for 2014, 2015, 2016, and 2018. Only …

The American opportunity tax credit becomes unavailable for filers earning a modified adjusted gross income of more than $90,000 (single) or $180,000 (married filing jointly).