Education Tax Credit Calculator (AOTC & LLC)
Estimate your American Opportunity (AOTC) and Lifetime Learning (LLC) education tax credits from tuition, income, and filing status, with income phaseout. Runs in your browser.
Estimated credits
- Phaseout factor
- 100%
- American Opportunity Credit (AOTC)
- $2,500.00 (40% refundable)
- Lifetime Learning Credit (LLC)
- $1,200.00
2024/2025 rules (IRS Pub 970): AOTC = 100% of the first $2,000 + 25% of the next $2,000 (max $2,500, 40% refundable, first 4 years of undergrad, ≥half-time); LLC = 20% of up to $10,000 (max $2,000, any post-secondary). MAGI phaseout: $$80k–$90k single. You can claim only one credit per student per year, and not on expenses paid with tax-free aid. Estimate only — not tax advice; see IRS Pub 970.
About this tool
The US tax code offers two credits that directly cut the tax you owe for higher-education costs, and this calculator estimates both. The American Opportunity Tax Credit (AOTC) is worth 100% of your first $2,000 of qualified expenses plus 25% of the next $2,000 — a maximum of $2,500 per student — is 40% refundable, and applies to the first four years of undergraduate study at least half-time. The Lifetime Learning Credit (LLC) is 20% of up to $10,000 of expenses (max $2,000 per return), is non-refundable, and covers any post-secondary education including graduate and part-time study. Both phase out over the same modified-AGI ranges — $80,000–$90,000 for single filers and $160,000–$180,000 for married filing jointly — and the tool applies that reduction linearly. You can claim only one of the two per student per year, and only on expenses not already paid with tax-free aid. These reflect 2024/2025 rules; tax provisions can change, so this is an estimate, not tax advice — see IRS Publication 970. Everything runs in your browser.
How to use it
- Enter your qualified tuition and fees.
- Enter your modified AGI and check the box if filing jointly.
- Read the estimated AOTC and LLC amounts and the phaseout factor.
- Pick the larger applicable credit; confirm eligibility with IRS Pub 970 or a tax pro.
Frequently asked questions
- What's the difference between the AOTC and LLC?
- AOTC: up to $2,500 per student, 40% refundable, first four years of undergrad at least half-time, with a 100%/25% structure. LLC: up to $2,000 per return, non-refundable, 20% of expenses, available for any post-secondary or graduate study and part-time. You can claim only one per student per year.
- What are the income limits?
- Both phase out over the same modified-AGI ranges: $80,000–$90,000 for single/head-of-household and $160,000–$180,000 for married filing jointly (2024/2025). Below the lower number you get the full credit; above the upper, none; in between it reduces linearly.
- What counts as qualified expenses?
- Tuition and required fees, and for the AOTC also required course materials (books, supplies). Room, board, transportation, and insurance do not count. Expenses paid with tax-free scholarships or grants must be subtracted first.
- Is the credit refundable?
- The AOTC is 40% refundable — up to $1,000 can come back even if you owe no tax. The LLC is non-refundable: it can reduce your tax to zero but does not generate a refund beyond that.
- Can I claim a credit for my child's tuition?
- Generally the credit goes to whoever claims the student as a dependent (often a parent) and pays the expenses, subject to the income limits. A student not claimed as a dependent may claim it themselves. The rules have details — see Pub 970.
- Is this tax advice?
- No. It is an informational estimate based on 2024/2025 rules, which can change. Verify with IRS Publication 970 or a qualified tax professional before filing.