All glossary terms
Glossary term
American Opportunity Tax Credit
A partially refundable education credit of up to $2,500 per eligible student for the first four years of post-secondary education.
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1
Jurisdictions
us
Definition
The Section 25A American Opportunity Credit covers 100 percent of the first $2,000 of qualified education expenses plus 25 percent of the next $2,000, with 40 percent of the credit refundable. Phaseouts apply for higher MAGI.
Examples
- A college student with $4,000 of qualified expenses receives the full $2,500 credit subject to MAGI phaseout.
Related terms
Translations
EScrédito de oportunidad americana
ZH美国机会税收抵免
DEAmerican Opportunity Steuergutschrift
FRcrédit American Opportunity
JAアメリカン・オポチュニティー控除
Citations
26 U.S.C. · 25A
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Primary sources
- IRS: AOTCVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.