Financial Answer Center
Education Tax Incentives
American Opportunity Credit (AOC)
The American Opportunity Credit (AOC), is available for qualified tuition and related expenses:
- The maximum amount of the AOC is $2,500 per student.
- In 2016 the credit is phased out if your modified adjusted gross income (MAGI) is between $80,000 and $90,000 for single filers ($160,000 and $180,000, if you file a joint return). The phase out is the same in 2015.
- Generally, 40% of the AOC is now a refundable credit for most taxpayers, which means that you can receive up to $1,000 even if you owe no taxes
- The term 'qualified tuition and related expenses' includes expenditures for 'course materials'. For this purpose, the term 'course materials' means books, supplies, and equipment needed for a course of study whether or not the materials must be purchased from the educational institution as a condition of enrollment or attendance
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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC., Member FINRA / SIPC Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.