American Opportunity Tax Credit
A tax credit of up to $2,500 a year per student for the first four years of college; up to $1,000 can come back as a refund.
Apply on the official site ↗Goes to IRS.gov. Applying is free.
Who generally qualifies
Students in their first four years of college, or parents paying for them, under the income limits.
Exact income limits and rules are set by Internal Revenue Service and can change. Check the official site for current details.
How to apply
- Get Form 1098-T from the school.
- Claim the credit on Form 8863 with your tax return.
What to have ready
- Form 1098-T
- Receipts for tuition, fees and books
Common questions
- Does it cost anything to apply?
- No. Applying through the official site is free. Be wary of anyone who charges a fee to apply for you.
- Do I have to pay it back?
- No. A tax break lowers what you owe. You don't pay it back.
- Who decides if I qualify?
- Internal Revenue Service makes the final decision. This page explains the program in general terms only.
- Where can I find current income limits and amounts?
- Income limits, benefit amounts and deadlines change, so check IRS.gov for the latest details.
Link checked October 22, 2026. BenefitSearch is not affiliated with Internal Revenue Service.