U.S. · education credits
AOTC and lifetime learning credit calculator.
Enter your income and tuition costs to compare the American opportunity credit and the lifetime learning credit.
The American opportunity credit is up to $2,500 per student and the lifetime learning credit up to $2,000 per return. Both phase out between $80,000 and $90,000 of MAGI ($160,000 to $180,000 joint) and are not available to married filing separately.
Your numbers
Result
How this is calculated
American opportunity credit: 100% of the first $2,000 of expenses plus 25% of the next $2,000, so $2,500 at $4,000 or more. Lifetime learning credit: 20% of up to $10,000 of expenses, so $2,000 at $10,000 or more. Each is then multiplied by the share left after the income phase-out: (upper limit minus MAGI) divided by $10,000 for single, $20,000 for joint.
Forty percent of the American opportunity credit, up to $1,000, can be refundable. The phase-out ranges are written into 26 U.S.C. 25A(d) and are not adjusted for inflation, so they are the same for 2026 as in Publication 970 (2025). You cannot claim both credits for one student in one year.
Worked example
Single, MAGI $85,000, $4,000 of expenses. Halfway through the $80,000 to $90,000 range you keep 50%. American opportunity credit: $2,500 × 50% = $1,250, of which $500 is refundable. Lifetime learning credit: $800 × 50% = $400.
Joint, MAGI $150,000, $12,000 of expenses. Below $160,000 there is no reduction: American opportunity credit $2,500, lifetime learning credit $2,000.
Who can claim which
The American opportunity credit is for a student in the first four years of postsecondary education, enrolled at least half time, and is limited to four tax years per student. The lifetime learning credit has no four-year limit and covers courses to acquire job skills, with no minimum enrollment. Compare the credits against the student loan interest deduction and your other education benefits.
Sources
Primary sources opened and checked on October 26, 2026. Figures are for tax year 2026 unless a source says otherwise.
Common mix-ups
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Often assumedThe American opportunity credit is fully refundable, so I get the whole $2,500 even if I owe nothing.
What the source saysPublication 970 says forty percent of the American opportunity credit may be refundable. That is up to $1,000 of a $2,500 credit; the rest only reduces tax you owe. [1]
Checked against these sources on .
Frequently asked questions
What is the American opportunity credit income limit for 2026?
The credit phases out between $80,000 and $90,000 of modified AGI for single filers and $160,000 to $180,000 for joint filers, and is zero above that. Those figures are fixed in the statute.
How much of the American opportunity credit is refundable?
Forty percent, up to $1,000 per student, even if you owe no tax.
Can I claim both credits?
Not for the same student in the same year. You can use the American opportunity credit for one student and the lifetime learning credit for another.
Can I claim either credit if I file married filing separately?
No. Both credits are unavailable to married filing separately.
How many years can I claim the American opportunity credit?
Four tax years per student, and only before the student completes four years of postsecondary education.
Not tax advice
This page is general information, not tax, legal or financial advice. Tax rules change and your facts may differ. Confirm anything that matters with the IRS, a CPA or an enrolled agent before you act. Everything runs in your browser; nothing you enter is sent anywhere.