Tax Credit For College Students


The American Opportunity Tax Credit covers four years of education for qualified students.

You can get up to a $2,500 credit per eligible student per year.

It is 100% of the first $2,000 you spend and 25% of the next $2,000 you spend.

The IRS says that the student has to meet the following requirements:

Be working toward a degree or another recognized form of education

Be enrolled at least half time for at least one academic period* starting in the tax year

Not have finished the first four years of college when the tax year started

Not have used the AOTC or the old Hope credit for more than four tax years

At the end of the tax year, you can't have a felony drug conviction.