$2,500 American Opportunity Tax Credit for Tuition - How to File IRS Form 8863

Students and their parents are generally eligible to claim either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Tax Credit via Form 8863 on their Form 1040.

In this video, I cover the American Opportunity Credit (AOC) for parents with a married filing joint tax return, where they have one daughter who just started her first year of college.

The AOC is a maximum credit of $2,500 per student, and it can only be claimed for 4 years for each student. Once the student has claimed the AOTC for all four years, they may still be eligible to claim the Lifetime Learning Credit if they continue to take classes in higher education.

For married filing joint taxpayers, the AOTC is not available if their modified AGI exceeds $180,000 for the year. If their AGI is between $160,00 and $180,000 for the year, the credit is available but subject to a reduction.

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