The American Opportunity Tax Credit is available to eligible students during their first four years of college or postsecondary education. The tax credit provides tax relief for qualified higher education expenses, such as tuition, fees, books and course materials. The credit covers 100 percent of the first $2,000 and 25 percent of the second $2,000 during the qualified period. Forty percent of it is refundable.
To be eligible, a student must be enrolled in a degree, certificate or other program leading to a recognized education credential and be enrolled at least halftime. Students listed as a dependent on another personís tax return are not eligible for this credit.
Visit the Internal Revenue Service website for complete information on current tax law.