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American Opportunity Tax Credit At A Glance
 
  • In 2009 through 2012, tax credit of up to $2,500 of the out-of-pocket cost of tuition and related expenses including course materials paid during the taxable year
  • Eligible for the first four years of college
  • 100% of the first $2,000 and 25% of the next $2,000
  • 40% of the credit is refundable with the maximum refundable amount of $1,000
  • Phase-out for taxpayers with adjusted gross income in excess of $80,000 or $160,000 for married
    couples filing jointly (AGI phase out limits are $90,000 individual, $180,000 married couples filing jointly)
  • Helps an estimated 4 million additional students attend college than the previous tax credit.
  • $13.907 billion in estimated benefits for students and families in 2009 and 2010
  • AOTC recipients in 2009 received an average tax credit of over $1,700
  • 4.5 Million Students and Families Received a Tax Refund from the AOTC in 2009 with an average value of $800
  • President Obama has proposed to make credit permanent
The National Association of College Stores is providing the information on this web site for general guidance only. The information on this site does not constitute legal advice, tax advice, accounting advice, or professional advice of any kind. There is no substitute for consultation with professional advisors based on the facts of each individual situation. NACS disclaims any liability whatsoever in connection with the accuracy or completeness of the material on this web site, or reliance on the general guidance provided.