KrisD15
Expert Alumni

Education

Look over Pub 970

 

Choosing an Education Credit takes a bit of planning.

Usually, the American Opportunity Tax Credit is worth more, however it may only be used four times. 

College expenses usually span over five years. 

 

You need to look at how the credits will impact this year's return, and if one credit should be "saved" for another year. 

 

The max expenses for the AOTC is 4,000

The max expenses for the LLC is 10,000.

 

If you only have less than 4,000 to apply to a credit for 2023, but expect to have 4,000 or more in four future years, PERHAPS you should save the AOTC for those four  future years. 

If you expect to get employer reimbursement or a very large scholarship next year, PERHAPS you should take the AOTC now.

 

There is no one easy answer to your question as the education section has so many variables. 

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