Respuesta :
The American Opportunity Tax Credit is a tax credit that can be used to offset the cost of the first four years of post-secondary education. Each eligible student may receive a maximum annual credit of $2,500, and if no taxes are due, 40%, or $1,000, may be reimbursed.
How can I receive the entire $2500 American Opportunity Credit?
Anyone who meets the income requirements and pays $4,000 or more in annual education costs qualifies for the whole $2,500. Your credit will be reduced if you have less than $4,000 in eligible educational costs.
Does the American Opportunity Tax Credit apply to students?
Who may assert it: The American Opportunity Credit is only available to parents and undergraduate college students. For a maximum of four years, you may claim the credit on your taxes. If your parents paid for your college costs and you are shown as a dependent on their return, they will be able to claim the credit.
Why only $1,000 in my American Opportunity credit?
Even if the AOC has a maximum value of $2,500, only $1,000 of it is truly refundable. Therefore, if you have any tax liabilities, you can utilize the remaining amount to lower them. However, you can only directly add $1,000 to your refund without incurring any tax obligations.
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