QUESTION:
What’s the difference between the American Opportunity Credit and the Lifetime Learning Credit?
ANSWER:
The American Opportunity Credit is designed for undergraduate expenses (up to $2,500 per student per year), while the Lifetime Learning Credit (up to $2,000 per student per year) offers more flexibility.
You cannot claim both credits in the same tax year for the same student, nor can the student be declared a dependent by someone else.
Calculate the value of the tax benefits to see who should claim education deductions and/or credits: you or your child.