Work out your American Opportunity and Lifetime Learning credits for college costs. Enter your filing status, MAGI and each student's qualified expenses to see each credit, the refundable part, the income phase-out and which credit gives you more.
Last updated:
Your tax situation
$
Usually your AGI (Form 1040 line 11)
Qualified education expenses
One amount per undergraduate in their first 4 years (tuition, fees, required books), after scholarships. Separate with commas or new lines.
$
Grad school, 5th+ year, part-time or job-skills courses
$
Blank = no limit on the non-refundable part
Enter your values to see the result.
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How to use the Education Tax Credit Calculator
Choose your filing status and enter your modified AGI.
List each AOTC-eligible student's expenses (undergrads in their first four years).
Enter Lifetime Learning expenses for grad school, part-time or job-skills courses.
Optionally enter your tax before credits to apply the non-refundable limit.
Press Calculate credits to see each credit and the best combination.
Education credit formulas
American Opportunity = 100% × first $2,000 + 25% × next $2,000, per eligible student (max $2,500). 40% is refundable.
Lifetime Learning = 20% × up to $10,000 of total expenses per return (max $2,000). Non-refundable.
Phase-out: credit × (upper limit − MAGI) ÷ $10,000 ($20,000 joint) when MAGI is inside the range.
Example: a married couple with MAGI of $170,000 has two undergrads with $4,500 and $2,800 of expenses. Before the phase-out the AOTC is $2,500 + $2,200 = $4,700. They are halfway through the $160,000–$180,000 range, so they keep 50%: $2,350, of which $940 is refundable.
AOTC vs Lifetime Learning at a glance
American Opportunity
Lifetime Learning
Maximum credit
$2,500 per student
$2,000 per return
Rate
100% of first $2,000, 25% of next $2,000
20% of up to $10,000
Refundable
Up to 40% ($1,000)
No
Years available
First 4 years of college, 4 claims max
Unlimited
Enrollment
At least half-time, degree program
Any course, even one class
Books and materials
Count even if bought elsewhere
Only if paid to the school as a condition of enrollment
MAGI phase-out
$80k–$90k / $160k–$180k joint
$80k–$90k / $160k–$180k joint
Tips to get the most
Pay at least $4,000 of AOTC expenses per student with non-529, non-scholarship money to get the full $2,500, and use 529 funds for the rest.
Spring tuition paid in December counts for the year you pay it, which can help you fill a year's $4,000.
If your income is too high, check whether the student can claim the credit on their own return instead of being your dependent.
Room, board, insurance and transportation never count as qualified expenses for either credit.
Frequently asked questions
What is the difference between the AOTC and the Lifetime Learning credit?
The American Opportunity Tax Credit (AOTC) is worth up to $2,500 per eligible student for the first four years of college, and 40% of it (up to $1,000) is refundable. The Lifetime Learning Credit (LLC) is 20% of up to $10,000 of expenses, so up to $2,000 per tax return, for any level of study including graduate school and job-skill courses, but it is not refundable.
How is the American Opportunity credit calculated?
It is 100% of the first $2,000 of qualified expenses plus 25% of the next $2,000, per student. Spending $4,000 or more gets the full $2,500. Qualified expenses are tuition, required fees and course materials, minus tax-free scholarships and grants.
What are the income limits for education credits?
Both credits phase out between $80,000 and $90,000 of modified AGI for single and head-of-household filers and between $160,000 and $180,000 for married couples filing jointly. These limits are not adjusted for inflation. Married filing separately cannot claim either credit.
Can I claim both credits?
Yes, on the same return for different students: for example the AOTC for a child in college and the Lifetime Learning credit for a parent taking a graduate course. You cannot claim both for the same student in the same year.
Who can get the AOTC?
The student must be pursuing a degree or credential, enrolled at least half-time for at least one academic period starting in the year, not have finished four years of higher education at the start of the year, not have claimed the AOTC in four earlier years, and not have a felony drug conviction.
Who claims the credit, parent or student?
Whoever claims the student as a dependent claims the credit, even if the student paid the tuition. If the parent does not claim the student, the student can claim the credit on their own return.
What documents do I need?
The student usually needs Form 1098-T from the school, and you file Form 8863 with your tax return. Keep receipts for books and required materials bought elsewhere, since they count for the AOTC.
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