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Who can claim the American Opportunity Tax Credit?

Reviewed by Jafar Clemons, EA September 2026

Short answer

You can claim the American Opportunity Tax Credit (AOTC) if you pay qualified college costs for yourself, your spouse, or a dependent who’s pursuing a degree, enrolled at least half-time, and still in their first four years of higher education. Your income has to fall under the phase-out limits, and you and the student both need a valid Social Security number.

See details

Student-side requirements

  • Pursuing a degree or other recognized education credential
  • Enrolled at least half-time for at least one academic period during the year
  • Hasn’t finished the first four years of college as of the start of the tax year
  • Hasn’t claimed the AOTC (or the Hope credit) for more than four tax years
  • No felony drug conviction as of the end of the tax year

Taxpayer-side requirements: who actually claims it

Whoever claims the student as a dependent claims the credit, typically a parent. A student can claim it themselves, but only if no one else claims them as a dependent.

To claim this credit, you need your own valid SSN in addition to the student’s. If you can’t claim the AOTC, it may be worthwhile to see if you qualify for the Lifetime Learning Credit (LLC).

Note: You can’t claim the AOTC if you’re married filing separately

Income limits and how the phase-out works

Your modified adjusted gross income (MAGI) determines how much credit you get:

MAGISingle / head of householdMarried filing jointly
Full credit$80,000 or less$160,000 or less
Partial credit$80,001–$90,000$160,001–$180,000
No creditAbove $90,000Above $180,000

Source: Internal Revenue Service

How much the AOTC is worth

The AOTC covers 100% of the first $2,000 in qualified expenses and 25% of the next $2,000, up to $2,500 per eligible student. If the credit brings your tax bill to zero, up to 40% ( or $1,000) is refundable.

For example, if a student has $3,000 in qualified education expenses, the AOTC covers 100% of the first $2,000, then 25% of the next $1,000.

$2,000 + ($1,000 x .25) = $2,250

Change for tax year 2026 and beyond

Starting with tax year 2026 returns, filed in 2027, taxpayers, the taxpayer’s spouse (if filing jointly), and the student must all have a valid Social Security number; an ITIN no longer works for any of the three. The One Big Beautiful Bill also added a second new requirement: you must provide the educational institution’s Employer Identification Number (EIN) on Form 8863 to claim the AOTC.

What is the American Opportunity Tax Credit (AOTC)? What Is the Lifetime Learning Credit? What's the difference between the American Opportunity Tax Credit vs Lifetime Learning Credit? What are education tax credits? What is Form 8863? What is modified adjusted gross income (MAGI)?