Category: Lifetime Learning Credit

Let’s compare the American Opportunity Tax Credit and the Lifetime Learning Credit.

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.