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Credit

What is the American Opportunity Credit?

Quick Answer

The American Opportunity Tax Credit (AOTC) is a federal credit worth up to $2,500 per eligible student for the first four years of post-secondary education. Up to $1,000 (40%) is refundable.

AOTC formula — 100% of first $2,000 plus 25% of next $2,000.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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