Education Credit

See related IRS Publication 970

American Opportunity vs. Lifetime Learning Credit

To claim either credit, complete Form 8863 and attach the form to your Form 1040 or Form 1040A.

The American Opportunity and Lifetime Learning credits are available to individuals for out-of-pocket tuition expenses incurred by students pursuing college degrees, graduate degrees or vocational training.

The American Opportunity Credit is four years of post-secondary education, adds required course materials to qualifying expenses, makes the credit available at higher income levels, and increases the amount of the credit.

The Lifetime Learning Credit is available to students attending a post-secondary educational program and who are not eligible to take the American Opportunity Credit. Either the American Opportunity Credit or the Lifetime Learning Credit can be claimed for each eligible student, but you cannot claim both in any year.

Each student can elect whether to claim the American Opportunity or Lifetime Learning Credit, based on the credit with the most tax benefit.

• The American Opportunity Credit is limited on a per-student basis.
• The Lifetime Learning Credit is limited on a per-household basis.

The tuition and fees deduction is also available to eligible students. Either one of these credits or the deduction, but not both, may be taken for any student in a year.

Content from 1040.com