American Opportunity Tax Credit (AOTC) - Internal Revenue Service 2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by filling out the tax year at the top of the form. Enter the beginning and ending dates clearly.
  3. In Section A, provide your entity's name, FEIN/SSN, address, and NAICS code. Ensure all information is accurate for proper processing.
  4. Select your ownership classification by checking only one box that applies to your entity type.
  5. Move to Section B and enter the applicable eligibility number as instructed. This is crucial for determining your eligibility for credits.
  6. In Section C, calculate and enter your total tax credit subject to income tax liability limitation based on previous sections.
  7. Complete Section D by listing each member’s name, percentage of ownership, and their share of total tax credit from Line 11.
  8. Finally, review all entries for accuracy before saving or exporting your completed form using our platform.

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The American Opportunity Education Credit is available to be claimed for a maximum of 4 years per eligible student. This includes the number of times you claimed the Hope Education Credit (which was used for tax years prior to 2009).
To be eligible for AOTC, the student must: Be pursuing a degree or other recognized education credential in a post-secondary educational institution eligible to participate in a US Department of Education student aid program.
Room and board are NOT considered a qualifying education expense in the following situations: If you are claiming the American Opportunity Tax Credit or Lifetime Learning Credit. For purposes of determining how much of your scholarship and fellowship income is tax-free.
You get the maximum credit if you spend at least $4,000 in qualifying expenses, including the cost of books as well as tuition and fees. The AOTC can be claimed for up to the first four years of qualified post-high-school education.
Expenses that do not qualify Insurance. Medical expenses (including student health fees) Transportation. Similar personal, living or family expenses.
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The American Opportunity Tax Credit (AOTC) is a partially refundable credit that offsets certain qualified post-secondary education expenses, up to $2,500.
The AOTC offsets up to $2,500 in eligible college expenses per year, per student. It covers tuition, required fees, and course materials, but not room and board, insurance, transportation, or medical expenses. Up to $1,000 of the credit is refundableeven if you owe no taxes.

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