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Income Tax Planning
Chapter 9: Tax Credits/AMERICAN OPPORTUNITY TAX CREDIT
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 9: Tax Credits

AMERICAN OPPORTUNITY TAX CREDIT

01.Core Concepts

• Maximum per eligible student is $2,500 per year for first 4 years of postsecondary education. • 100% of first $2,000 of qualifying expenses, plus • 25% of next $2,000 of qualifying expenses • Student must: • Pursue an undergraduate degree or recognized credential • Take at least 1/2 of full-time course load • Have a tax ID number issued prior to the due date of the return on which the credit is claimed • Not have any felony drug conviction • Provide Social Security number for both taxpayer claiming credit and student, and provide employer ID for educational institution, beginning in 2026