📌 Key Takeaway: The American Opportunity Tax Credit (AOTC) covers up to $2,500 per student for the first four years of higher education and is partially refundable, while the Lifetime Learning Credit covers up to $2,000 per tax return with no limit on years but isn't refundable.
American Opportunity Tax Credit (AOTC)
- Up to $2,500 per eligible student.
- Available only for the first 4 years of post-secondary education.
- Up to 40% of the credit is refundable.
- Student must be pursuing a degree and enrolled at least half-time.
Lifetime Learning Credit
- Up to $2,000 per tax return (not per student).
- No limit on the number of years you can claim it.
- Covers graduate courses and skill-building classes, not just degree programs.
- Fully non-refundable.
You Can't Claim Both for the Same Student in the Same Year
If you have multiple students, you can potentially claim AOTC for one and Lifetime Learning for another in the same year, but not both credits for the same student's expenses simultaneously.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.