How much is the 2016 American Opportunity Credit?
Your refundable American opportunity credit will be $1,000. Your nonrefundable credit may be as much as $1,500, but depends on your tax liability.
Who should file taxes 2016?
What Are the Minimum Income Requirements to File a 2016 Federal Income Tax Return?
|Minimum W-2 Income Requirement
|65 or older
|Head of Household
|65 or older
|Married Filing Jointly
|Under 65 (both spouses)
Can I claim American Opportunity credit for previous years?
Yes. The American opportunity tax credit, which expanded and renamed the already-existing Hope scholarship credit, can be claimed in tax-years 2009 through 2017 for expenses paid for tuition, certain fees and course materials for higher education.
What happens if I claim the American Opportunity Credit for more than 4 years?
Yes, after you have received the American Opportunity Credit for 4 years you can then qualify for the Lifetime Learning Credit or the Tuition and Fees deductions. The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.
Should I claim the American Opportunity Credit?
The American Opportunity Tax Credit is the best choice for most people if you or the student in question is enrolled in their first four years of undergraduate study.
Which is better American Opportunity or Lifetime Learning?
The Lifetime Learning Credit is less restrictive than the American Opportunity Tax Credit in many ways. That produces a maximum credit of $2,000. The same expenses of tuition and required fees and materials qualify, but the credit is nonrefundable, so you can’t use it if you don’t otherwise have tax liability.