![]() If you claim the American Opportunity Credit for a student in a given year, you cannot also claim the Lifetime Learning Credit for the same student. ![]() The Lifetime Learning Credit, on the other hand, is nonrefundable, so you can claim a credit only up to the amount of the overall tax you owe. The American Opportunity Credit has a higher limit than the Lifetime Learning Credit, at $2,500, and the phase-out begins at higher MAGI levels as well.Īnother important distinction between the two credits is that up to 40 percent of the American Opportunity Credit is refundable, meaning you can actually receive money back if the amount of the credit exceeds your tax liability. As with the LLTC, you can claim the American Opportunity Credit for yourself, your spouse or your dependents with qualifying educational expenses while pursuing an undergraduate degree. The American Opportunity Credit is another popular educational credit that you can claim using Form 8863. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |