With tax season literally weeks away, now is the time to have a perfect understanding of the American Opportunity Tax Credit. The American Opportunity Tax Credit is an education tax credit that can really improve your tax refund.
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.