The American Opportunity Tax Credit (AOTC) is a tax credit that helps students and families reduce the cost of higher education during the first four years of college. It provides credit for qualified education expenses like tuition, course materials, and certain fees.
To qualify, the student must be enrolled at least half-time in a program leading to a degree or recognized credential, and the taxpayer claiming the credit must meet yearly income limits.
The AOTC can reduce the amount of tax you owe, up to 40% of the credit is refundable, meaning you could get money back even if you don’t owe taxes. Because this credit can be worth up to several thousand dollars per eligible student each year, it’s an important benefit to claim if you or a dependent is paying for college.
For more information click in this link: IRS.gov