American Opportunity Credit

A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify. The phase out for married taxpayers is Adjusted Gross Income between $160,000- $180,000. The phase out is between $80,000 and $90,000 for single, head of household or qualifying widower(s) filing status taxpayers. Married filing separately status are not allowed a American Opportunity credit.