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TAX CREDIT AT A GLANCE
TAX CREDIT SUMMARY & EXAMPLE
NEWS & RESOURCES
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American Opportunity Tax Credit At A Glance
In 2009 and 2010, 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
President Obama has proposed to make credit permanent