The AOTC is a reimbursement for eligible student expenditures paid for the first four years of higher education. For each eligible student, you can receive up to $2,500 annual credit. If the credit lowers the amount of tax you owe, you are eligible to get a reimbursement of 40% of the leftover credit amount, up to $1000. For each eligible student, the credit is equal to 100% of the first $2,000 in qualified education expenses paid to you, plus 25% of the subsequent $2,000 in qualified education expenses paid for that student. In this article, you will learn about the American Opportunity Tax Credit 2024 and all the necessary information you need to know about it. Also, one needs to qualify for the AOTC Eligibility 2024 to receive this benefit payment. Furthermore, visit the official website at www.irs.gov to claim your tax credit and to obtain updates on AOTC.
American Opportunity Tax Credit 2024
An American Opportunity Tax Credit may be used to qualify post-secondary education expenses for the first four years of the student’s program. Each eligible student may receive up to $2,500 in credit each year. The AOTC may be claimed on a tax return by the student, a person claiming the student as a dependent, or a spouse contributing to post-secondary education. If a student is dependent, the AOTC assists parents in defraying the expenses of the student’s post-secondary education. The American Opportunity Tax Credit 2024 provides an annual $2,500 tax credit for qualified course materials, school fees, and tuition. The AOTC is only available to those whose modified adjusted gross income is not above $80,000. Read the article further to know the eligibility for AOTC in 2024
What is AOTC Eligibility in 2024?
- Students can apply for the AOTC if they fulfil the following American Opportunity Tax Credit Eligibility 2024:
- Pursuing a degree at work.
- Not having finished the first four years of post-secondary education at the beginning of the tax year, not claiming the AOTC or the prior Hope credit for more than four tax years.
- Not having felony conviction at the end of the year.
- A student must be engaged in a program at least half-time to receive a degree, certificate, or other recognized educational certification.
American Opportunity Tax Credit Payment 2024
| Program | American Opportunity Tax Credit Payment 2024 |
| Country | United States of America |
| Year | 2024 |
| AOTC Eligibility 2024 | Students who are engaged in a post-secondary education |
| Annual Credit | $2,500 |
| Category | Finance |
| Official Site | www.irs.gov |
Income Limit For American Opportunity Tax Credit 2024
- Your maximum adjusted gross income must be less than $80,000 if you file as a single person or $160,000 if you file as a married couple filing jointly to be eligible for the full AOTC.
- The maximum adjusted gross income for single taxpayers is $90,000, and for married filers filing jointly, it is $180,000. After that, the credit is totally phased out.
| Particulars | Income Threshold |
| Single Person | Less than $80,000 |
| Married Couple | $160,000 |
Expenses Qualified Under the American Opportunity Tax Credit 2024
The expenses covered by the AOTC are as below:
- Fees and tuition needed to enrol in or attend a qualifying educational institution;
- Texts, materials, and tools specific to the course that are needed for the study;
- Additional required costs, such as lodging and board, are included in the tuition that the school publishes.
What is the Working Standards of AOTC 2024?
- A credit known as the AOTC assists qualified students and their families in covering certain costs associated with pursuing higher education.
- Based on 100% of the first $2,000 in approved expenses and 25% of the next $2,000 in suitable expenses, each eligible student may receive a credit worth up to $2,500.
- Since the AOTC is partially refundable, you may be able to get a refund of up to $1,000 of the credit even if you have no outstanding taxes. There are furthermore income restrictions on the credit’s refundable part.
How To Claim American Opportunity Tax Credit 2024?
Follow the steps below to Claim American Opportunity Tax Credit 2024:
- Go to the official website at www.irs.gov.
- Therein, fill out Form 1098-T, which is mandatory.
- Form 1098-T helps to figure out your credit, therefore, fill it with your accurate information.
- The next thing to do to submit your AOTC claim is to complete Form 8863.
- Provide your details along with your SSN in the form.
- At the final stage submit your form and await the application review process.
FAQs On AOTC 2024
Eligible candidates may receive a sum of $2,500 as an annual credit under AOTC.
Students who are engaged in a post-secondary education are eligible.
Candidates can visit www.irs.gov and apply for AOTC in 2024.
