The American Opportunity tax credit is available for the first four years of undergraduate education. The credit is worth up to $2,500 and qualifying expenses include tuition, fees, and other expenses that may be required as a condition of enrollment.
The best feature about this education credit is that 40% or up to $1,000 is refundable. You may ask yourself what does refundable mean? It’s just tax jargon that means if your refund was $100 and you were eligible to claim the American Opportunity Tax Credit your refund would increase by $1,000 to $1,100. Just remember refundable credits put dollars in your pocket!
Be sure to use TaxSlayer.com’s Deduction Guide or help videos to see if you qualify for this powerful education credit.