What are the essential requirements for claiming the American Opportunity Tax Credit?

To qualify for the American Opportunity Tax Credit (AOTC), you must meet several essential requirements.

Who qualifies as an eligible student for the AOTC?

To qualify, the student must be in the process of obtaining a degree or other recognized education credential and must be enrolled for at least one academic period starting in the tax year. Qualified individuals should not have completed the first four years of higher education at the beginning of the tax year.

What expenses qualify for the American Opportunity Tax Credit?

Education expenses that qualify are tuition, fees, books, supplies, and equipment required for courses of study (not including room and board, transportation, and medical expenses).

What are the other requirements for claiming AOTC?

• To receive full credit, your modified adjusted gross income (MAGI) must meet certain thresholds.
• It is necessary for the student not to have claimed the AOTC or the former Hope credit for more than four tax years.
• During the tax year, the student must not have been found guilty of a felony drug offense.
• You are required to have received Form 1098-T (Tuition Statement) from an educational institution that is qualified.