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To claim a tax credit on your higher education expenses, you (or your spouse or dependent) must have enrolled at a qualifying college or university and paid for eligible expenses. If your filing status is married filing separately, you are not eligible for any education credits.
To claim AOTC, you must file a federal tax return, complete the Form 8863 and attach the completed form to your Form 1040 or Form 1040A. Use the information on the Form 1098-T Tuition Statement, received from the educational institution the student attended.
It is a tax credit of up to $2,500 of the cost of tuition, certain required fees and course materials needed for attendance and paid during the tax year. Also, 40 percent of the credit for which you qualify that is more than the tax you owe (up to $1,000) can be refunded to you.
Who can claim an education credit? You, your dependent or a third party pays qualified education expenses for higher education. An eligible student must be enrolled at an eligible educational institution. The eligible student is yourself, your spouse or a dependent you list on your tax return.
To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly). You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).

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You can get the full education tax credit if your modified adjusted gross income, or MAGI, was $80,000 or less in 2023 ($160,000 or less if you file your taxes jointly with a spouse).
By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year.

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