AOTC Eligibility: Who is an eligible student for the AOTC?

The topic of higher education often speaks fierce debate among residents of the United States of America. This is because the price of a college degree in America has skyrocketed over the years and there is a genuine fear that a basic undergraduate education in the US might become a luxury item that is open to only a select band of individuals. The other concern is the growing debt created by student loans. It is estimated that a combined 48 million Americans have an outstanding debt of over 1.5 trillion dollars. With that amount set to increase, the topic of student loan forgiveness has dominated more than one news cycle. While President Joe Biden and his administration introduced the Student Loan Debt Relief Plan, which aimed at forgiving up to 20,000 dollars for those earning 125,000 dollars or less, the move was ultimately blocked and its future hangs in the balance as the United States Supreme Court deliberates on its approval. That said there are other means one can use to lower the overall cost of tuition at the undergraduate level. What is the American Opportunity Tax Credit? The American opportunity tax credit (AOTC) is a tax credit issued by the IRS for the expenses incurred for putting an eligible student through their first four years in college. The highest possible amount one can receive is 2,500 dollars per eligible student. The tax incentive is also open to those making less than 80,000 dollars for single filers and 160,000 dollars for those filing as a couple. Eligibility requirements To claim AOTC a student must meet the following criteria: Be pursuing a degree or other recognized education credential Be enrolled at least half time for at least one academic period beginning in the tax year Not have finished the first four years of higher education at the beginning of the tax year Not have claimed the AOTC or the former Hope credit for more than four tax years Not have a felony drug conviction at the end of the tax year

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