To be eligible for the American Opportunity Tax Credit (AOTC),
the student must:
- Be pursuing a degree or other
recognized education credential;
- Be enrolled at least half
time for at least one academic period (semester, quarter,
etc.) beginning in the tax year;
- Not have finished the first
four years of higher education at the beginning of the tax year;
- Not have claimed the AOTC or
the former Hope credit for more than four tax years; and
- Not have a felony drug
conviction at the end of the tax year.
Click this link for more detailed information about
the American
Opportunity Tax Credit.
Additionally, you will not be able to claim the AOTC if:
- Your employer pays for or
reimburses your tuition and fees;
- Your tuition and fees are
paid by tax-free benefits such as the GI Bill;
- Your scholarships and grants
(Box 5) exceed your qualified tuition and fees;
Finally, be aware of the income limits for AOTC:
- To claim the full credit,
your MAGI, modified adjusted gross income, must be $80,000 or less
($160,000 or less for married filing jointly).
- You receive a reduced amount
of the credit if your MAGI is over $80,000 but less than $90,000 (over
$160,000 but less than $180,000 for married filing jointly).
- You cannot claim the credit
if your MAGI is over $90,000 ($180,000 for joint filers).
