american opport tax credit limit
The income limit to receive the American Opportunity Tax Credit is  $180,000 when filing jointly or $90,000 if you are single, head of household, or a qualifying widower. Tax-free portions of scholarships and fellowships. 1  Pell grants. 2  Employer-provided educational assistance (section 127 tuition reimbursement plan) 3  Veterans’ educational assistance. 4  Any other tax-free payments received as educational assistance. The American opportunity tax credit, which expanded and renamed the already-existing Hope scholarship credit, can be claimed in tax-years 2009 through 2017 for expenses paid for tuition, certain fees and course materials for higher education. If the amount of the American opportunity tax credit for which you're eligible exceeds your tax liability, the excess will be refunded to you up to the lesser of 40 percent of the credit or $1,000. Q10. Who can claim the American opportunity tax credit? A. If a student has not completed the first four years of post-secondary education as of the beginning of the taxable year, and has not claimed the Hope scholarship credit and/or the American opportunity tax credit for more than four taxable years, the student can claim the American opportunity tax credit for qualified expenses paid during the entire taxable year. Not Eligible To Claim The $2,500 American Opportunity (College) Tax Credit, Try This. Taxpayers who pay qualified college tuition and fee expenses may be able to claim the American Opportunity Tax Credit (AOTC) worth up to $2,500 per eligible child. That means $10,000 of tax savings per child over four years. Only one education credit is allowed per student per year, and the person who’s claiming the credit must be the one who’s claiming the student (e.g., parent or self). The income limit to receive the American Opportunity Tax Credit is $180,000 when filing jointly or $90,000 if you are single, head of household, or a qualifying widower. Note that the maximum credit is gradually reduced for those making between $80,000 and $90,000 or between $160,000 and $180,000 when married filing jointly. If the amount of the American opportunity tax credit for which you're eligible exceeds your tax liability, the excess will be refunded to you up to the lesser of 40 percent of the credit or $1,000. q10. The American Opportunity Tax Credit can provide some relief to the cost of college by providing taxpayers with a credit up to $2,500 per year per qualifying student. Proceeds from the credit can go towards tuition, enrollment fees, and course materials, etc. Q8. How is the American opportunity tax credit calculated? A. Taxpayers will receive a tax credit based on 100 percent of the first $2,000, plus 25 percent of the next $2,000, paid during the taxable year for tuition, fees and course materials. Q9. How will the American opportunity tax credit affect my income tax return? A.
The income limit to receive the American Opportunity Tax Credit is $180,000.