AOTC Education Tax Credit Calculator
Estimate the American Opportunity Tax Credit (AOTC) — up to $2,500 per student for the first four years of college, with income phase-out.
How it works
Base = 100% of first $2,000 + 25% of next $2,000 (max $2,500) · Phase-out linear over the MAGI range · 40% of the credit is refundable
The American Opportunity Tax Credit covers 100% of the first $2,000 of qualified college expenses and 25% of the next $2,000, for a maximum of $2,500 per eligible student. It applies to the first four years of undergraduate study and phases out over a modified-AGI band. Up to 40% of the credit is refundable, so you can receive part of it even with no tax liability.
Worked example
A single filer with $4,000 of tuition and $60,000 of income (below the $80,000 phase-out) gets $2,000 + 25% × $2,000 = $2,500, the full credit, with up to $1,000 refundable.
Frequently asked questions
How much is the American Opportunity Credit?
Up to $2,500 per eligible student — 100% of the first $2,000 of qualified expenses plus 25% of the next $2,000 — for each of the first four years of undergraduate education.
What counts as a qualified expense?
Tuition, required enrollment fees, and course materials the student must buy. Room, board, insurance, and transportation do not count.
What makes the AOTC unusual among credits?
Up to 40% of it is refundable, so a student or family with little or no tax owed can still receive as much as $1,000 back.
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Educational estimate, not tax advice. Uses recent federal parameters that change yearly and ignores your full situation — confirm with a tax professional or the IRS.