What’s the American Opportunity Credit? Am I eligible?
The American Opportunity Credit was once the Hope Credit but has since been expanded.
$2,500 can be claimed per eligible student, per qualifying year. It also covers 100% of the first
$2,000 in qualified expenses along with 25% of the next $2,000. Since 40% is considered
refundable, you may receive up to $1,000 as a refund for each eligible student.
In order to qualify you must:
- Have qualified expenses such as tuition, fees, books, supplies, equipment, and other required
- Have not claimed the credit more than four years
- Be enrolled at least half-time for at least one academic period for that tax year
- Not exceed modified adjusted gross incomes (MAGI) of $90,000 for single filers, $180,000 for
married filing jointly
- Not have any felony drug convictions