Education Tax Credit Calculator
Calculate American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit for education expenses.
Education Details
Qualified Expenses
Tax-free scholarships/grants reduce qualified expenses. Taxable scholarships don't reduce.
Income & Filing Status
If dependent, parent claims credit. If not, student claims credit.
Qualified vs Non-qualified Expenses
Qualified Expenses
- Tuition and fees
- Books, supplies, equipment required for enrollment
- Computers if required by institution
Non-qualified Expenses
- Room and board
- Transportation
- Insurance
- Medical expenses
- Personal living expenses
- Sports/recreation unless required
American Opportunity Tax Credit (AOTC)
Qualified Expenses (net)$$10000.00
Number of Students1
Maximum Credit per Student$$2500
Calculated AOTC$$2500.00
Refundable Portion (40%)$$1000.00
Non-refundable Portion$$1500.00
AOTC Eligibility Requirements
Education Level: First 4 years of post-secondary education
Enrollment: At least half-time for at least one academic period
Purpose: Pursuing degree or other recognized credential
Student: You, spouse, or dependent claimed on your return
Criminal: No federal or state felony drug conviction
Limit: Maximum 4 years per student (includes years claimed by others)
LLC Eligibility Requirements
Education Level: Any post-secondary education (undergraduate, graduate, professional)
Enrollment: Any enrollment level (even one course)
Purpose: Degree, credential, or job skill improvement
Student: You, spouse, or dependent
Limit: No year limit, unlimited years of credit
Cannot Claim Both for Same Student
Cannot claim AOTC and LLC for same student in same year. Choose the credit that gives you the largest benefit. AOTC generally higher for eligible undergraduate students. LLC better for graduate students, professional education, or after 4 years. Claim different credits for different students in same family.
Key Points
AOTC: $2,500 max (40% refundable), first 4 years, undergraduate. LLC: $2,000 max (non-refundable), no year limit, all levels. Phase-out at higher incomes. Must have Form 1098-T from institution. Cannot claim for same student as another taxpayer. Reduced by tax-free scholarships. File Form 8863 to claim. Tuition required; room/board excluded.