Types of Credits (American Opportunity Credit, Lifetime Learning Credit)

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  • These credits are available to the students for the first four years of undergraduate post-secondary education.
  • If, a student pays for his/her own educational expenses, and is not claimed as dependent- then he may be considered for this credit.


The amount of non-refundable credit has increased from 20 % of the first $5,000 educational expenses paid/tax year, to 20% of the first $10,000 qualified expenses paid/tax year.

The LLC will slowly cancel out for parents who file jointly, and have an annual gross income between $108,000 to $128,000. The limit for a single parent is between $54,000 to $64,000 (as per the changes made in 2014).

  • As per the claims made by financial experts – American Opportunity Credit will offer you larger tax benefits, in comparison to the Lifetime Learning Credit.
  • They are not mere tax deductions – Rather, they are instrumental in reducing your tax liability.
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