The American Opportunity Tax Credit (AOTC) is a tax credit for qualified education expenses paid for the first four years of post-secondary education. The maximum amount of the credit is $2,500 per eligible student, and it is phased out for taxpayers with modified adjusted gross incomes (MAGIs) above certain levels.
The AOTC is a valuable tax break for families with college students. It can help to offset the cost of tuition, fees, and other qualified expenses. The credit is also refundable, which means that even taxpayers who owe no income tax can receive the full amount of the credit.