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Education Credits CalculatorAmerican Opportunity and Lifetime Learning

What do these figures come to once the work is shown?

American opportunity credit per student and lifetime learning credit after the income phase-out, with the refundable 40 percent of the AOTC.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Total credit allowed
$2,875
After the income phase-out, before the tax liability limit
American opportunity credit allowed
$2,375
Refundable part of the AOTC (40%)
$950
Drawn to one scale
Total credit allowed$2,875
American opportunity credit allowed$2,375
Refundable part of the AOTC (40%)$950
Lifetime learning credit allowed$500
Credits before the income limit$5,750
All results
MeasureResult
Total credit allowed$2,875
American opportunity credit allowed$2,375
Refundable part of the AOTC (40%)$950
Lifetime learning credit allowed$500
Credits before the income limit$5,750
Share of credits allowed
Falls to zero across the phase-out range
50.00%
How this was worked out
Work shownrecomputed as you type
AOTC per student = 100% of first $2,000 + 25% of next $2,000 of expenses (max $2,500)
Lifetime learning credit = 20% of up to $10,000 of expenses (max $2,000 per return)
Share allowed = (top of range - modified AGI) / range width, from 0 to 1
Range: $80,000 to $90,000 (single), $160,000 to $180,000 (joint)
Refundable AOTC = 40% of the AOTC allowed

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • AOTC per student = 100% of first $2,000 + 25% of next $2,000 of expenses (max $2,500)
  • Lifetime learning credit = 20% of up to $10,000 of expenses (max $2,000 per return)
  • Share allowed = (top of range - modified AGI) / range width, from 0 to 1
  • Range: $80,000 to $90,000 (single), $160,000 to $180,000 (joint)
  • Refundable AOTC = 40% of the AOTC allowed

How it works

Section 25A gives two credits. The American opportunity credit is worth up to $2,500 per eligible student for four years, and 40 percent of it is refundable. The lifetime learning credit is worth 20 percent of up to $10,000 of expenses per return. A student cannot be claimed for both credits in the same year, so enter AOTC students and the other students separately.

Both credits shrink together as modified AGI crosses the range. The phase-out thresholds are written into section 25A(d) and are not indexed. This tool does not apply the tax liability limit on the nonrefundable part.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Can married filing separately claim these credits?

No. Section 25A(g)(6) allows the credits to a married individual only on a joint return.

Why is only part of the AOTC refundable?

Section 25A(i) treats 40 percent of the allowed AOTC as a refundable credit and the rest is nonrefundable.

What is modified AGI?

Adjusted gross income increased by amounts excluded under sections 911, 931 or 933.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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