How to Use the Education Tax Credit Calculator
The US offers two main federal education tax credits: the American Opportunity Tax Credit (AOTC) for the first four years of college, and the Lifetime Learning Credit (LLC) for any level of postsecondary education with no year limit. You can only claim one credit per student per year.
The AOTC covers 100% of the first $2,000 in qualified expenses plus 25% of the next $2,000, for a maximum of $2,500 per eligible student. The LLC covers 20% of up to $10,000 in combined expenses per tax return, for a maximum of $2,000 total — not per student.
This calculator applies the correct formula based on which credit you choose. Keep in mind both credits phase out at higher income levels, and this tool does not apply that phase-out.
Frequently Asked Questions
The American Opportunity Tax Credit (AOTC) offers up to $2,500 per eligible student for the first four years of postsecondary education. The Lifetime Learning Credit (LLC) offers 20% of up to $10,000 in expenses per tax return (max $2,000 total), with no limit on the number of years.
Yes, both credits phase out at higher incomes — the AOTC phases out around $80,000-$90,000 MAGI for single filers ($160,000-$180,000 married filing jointly), and the LLC has similar limits. This calculator doesn't apply the phase-out; check your actual eligibility based on income.