What expenses qualify for AOTC?

Qualified expenses generally include tuition, required fees, and books, supplies, and equipment needed for a course of study. Room and board, transportation, insurance, and medical expenses do not qualify.

How much of the AOTC can be refundable?

Up to 40% of the allowed American Opportunity Tax Credit can be refundable, up to $1,000, unless the claimant is limited by the IRS under-24 support rule.

Who is an eligible student for AOTC?

An eligible student must be pursuing a degree or other recognized credential, be enrolled at least half-time for at least one academic period, not have completed the first four years of post-secondary education at the beginning of the year, not have used AOTC for more than four tax years, and not have a felony drug conviction at year end.

Current IRS AOTC rules

American Opportunity Tax Credit (AOTC) Calculator

Q: How is the AOTC calculated?

The American Opportunity Tax Credit equals 100% of the first $2,000 of adjusted qualified education expenses plus 25% of the next $2,000, for a maximum of $2,500 per eligible student.

Estimate your federal education tax credit for undergraduate expenses, compare refundable vs nonrefundable value, and see how MAGI phaseouts affect your result.

Up to $2,500 per student 40% refundable up to $1,000 100% of first $2,000 25% of next $2,000

$2,500 Maximum annual credit per eligible student

$1,000 Maximum refundable portion

4 years Maximum number of tax years per student

$80k/$160k Full-credit MAGI threshold by filing status

In short

Estimate your AOTC in four steps

Enter taxpayer details, add each eligible student, subtract tax-free aid and refunds from qualified expenses, then calculate your phaseout-adjusted credit and estimated refundable portion.

Per student credit MAGI phaseout built in Refundable check included Multiple students supported

This is an estimate for planning purposes. Actual filing results can change based on Form 8863, Form 1098-T details, dependency status, TIN timing, school eligibility, tax liability, and how the same expenses are used for other education benefits.

Quick rule reminders

Include only adjusted qualified expenses

Include tuition, required fees, and required books, supplies, and equipment.
Subtract tax-free scholarships, grants, Pell, employer aid, veterans aid, and refunds.
Do not include room and board, transportation, insurance, or medical costs.
Do not use the same expenses for AOTC and another education credit or tax-free education benefit.

Step 1

Taxpayer information

These inputs control the MAGI phaseout, filing-status eligibility, refundable portion, and the estimated nonrefundable amount you can actually use.

Filing status AOTC is generally not allowed for married filing separately. Nonresident aliens generally need resident treatment on a joint return.

Modified adjusted gross income (MAGI) Use the claimant's MAGI for the return. The phaseout applies to the total AOTC after student credits are added together.

Federal income tax liability available for nonrefundable credits This estimate limits the nonrefundable portion. Enter 0 if you only want the maximum theoretical split.

Planner label This label is for the results summary only. Update it if you change the page title or tax-year context.

Optional: check whether the refundable portion is restricted for certain claimants under 24

Claimant age at year-end This test applies to the person claiming the credit, not necessarily the student.

Claimant earned income Used for the under-24 refundable rule.

Claimant total support received Used to compare earned income vs one-half of support.

Claimant was a full-time student Relevant mainly for ages 19 through 23.

At least one of the claimant's parents was alive at year-end If you leave this section blank, the calculator assumes the refundable portion is allowed.

Before filing, confirm that you are not claimed as a dependent on another return and that you meet any residency, TIN, and school eligibility requirements.

Step 2

Basic eligibility checks

Leave these checked only if they are true for the person claiming the credit or the return overall.

The claimant is not claimed as a dependent on another person's return. The claimant is not a nonresident alien for any part of the year, or resident treatment is properly elected on a joint return. The claimant and each student have valid TINs by the return due date (including extensions). The school issued Form 1098-T or the return otherwise meets an exception and documentation rules.

This calculator estimates the amount of the credit. It does not replace Form 8863 or Publication 970 review.

No double benefit rule: you cannot use the same expenses for AOTC and another education credit, the tax-free part of a 529/Coverdell distribution, or tax-free scholarships and grants.

Step 3

Eligible students and expenses

Add one card per student. This calculator supports up to 4 students on the same return.

1 student added.

Step 4

Estimated AOTC results

Calculate the total tentative credit, apply the MAGI phaseout, then split the estimated result into refundable and nonrefundable portions.

Enter your details and click Calculate AOTC to see the estimated credit, phaseout factor, and per-student breakdown.

Estimated total benefit

$0.00

Current IRS rules

Allowed AOTC after phaseout

$0.00

No phaseout applied

Refundable portion

$0.00

Up to 40% of allowed credit

Nonrefundable portion used

$0.00

Limited by entered tax liability

Student	Adjusted expenses	Tentative credit	Status

Total adjusted expenses$0.00

Total tentative credit before phaseout$0.00

Phaseout factor applied100.00%

Refundable amount disallowed by under-24 rule$0.00

Unused nonrefundable amount due to tax liability$0.00

FAQ

American Opportunity Tax Credit questions

How is the AOTC calculated?

The tentative credit is 100% of the first $2,000 of adjusted qualified education expenses plus 25% of the next $2,000, for a maximum of $2,500 per eligible student. Then the total is reduced if MAGI falls inside the phaseout range.

What expenses count for AOTC?

Generally, tuition, required fees, and required books, supplies, and equipment count. Required student activity fees can also count when required for enrollment or attendance. Room and board, transportation, insurance, and medical expenses do not count.

Who qualifies as an eligible student?

The student must be in a degree or other recognized credential program, enrolled at least half-time for at least one academic period, still within the first four years of postsecondary study at the start of the year, not have already used AOTC for more than four tax years, and not have a felony drug conviction at year-end.

Can the AOTC be refunded?

Yes. Up to 40% of the allowed credit can be refundable, capped at $1,000. However, certain claimants under age 24 can lose the refundable portion if the IRS support and filing-status test applies.

Can I use the same expenses for scholarships, 529 plans, and AOTC?

No. The same expenses cannot be counted twice for AOTC and another education credit or tax-free education benefit. You generally subtract tax-free educational assistance and refunds before calculating the credit.

American Opportunity Tax Credit (AOTC) Calculator

Estimate your AOTC in four steps

Include only adjusted qualified expenses

Taxpayer information

Basic eligibility checks

Eligible students and expenses

Estimated AOTC results

American Opportunity Tax Credit questions

Before filing your return

Student 1