How Do I Claim The American Opportunity Tax Credit?
October 30, 2022 ⚊ 1 Min read ⚊ Views 96 ⚊ BUSINESS
Students who pay taxes or their parents can use the American Opportunity Credit to lower the cost of their college education. Since the credit lowers your tax liability on a dollar-for-dollar basis rather than only lowering the amount of taxable income, it often gives higher tax savings than other education-related tax advantages. There are, nevertheless, a number of prerequisites for qualifying for american taxes as usual.
The American Opportunity Tax Credit (AOTC) offers an annual tax credit up to $2,500 of qualified costs out of the first $4,000 for college students or their parents. Only the first four years of college are covered, and enrollment must be at least half-time.
Tags: American taxes
