Education Credits

What is the maximum American Opportunity Tax Credit (AOTC) per eligible student?

$2,500.

How is the AOTC calculated?

100% of the first $2,000 in qualified expenses plus 25% of the next $2,000.

What is the maximum refundable portion of the AOTC?

40%, or up to $1,000 per eligible student, subject to restrictions.

What percentage of the AOTC is nonrefundable?

60%.

What is the maximum Lifetime Learning Credit (LLC)?

$2,000 per tax return.

How is the LLC calculated?

20% of up to $10,000 in combined qualified education expenses per return.

What are the 2025 AOTC and LLC MAGI phaseout ranges for Single filers?

$80,000 to $90,000.

What are the 2025 AOTC and LLC MAGI phaseout ranges for Married Filing Jointly?

$160,000 to $180,000.

How is the education credit phaseout percentage calculated for a Single filer within the phaseout range?

(MAGI − $80,000) ÷ $10,000 gives the percentage of the credit lost.

For how many tax years can the AOTC generally be claimed for one eligible student?

A maximum of four tax years.

For how many years can the LLC be claimed?

No limit on the number of years.