What Is the American Opportunity Credit?

The American Opportunity Credit (AOC) gives you up to $2,500 per year per eligible student for the first four years of college. Up to $1,000 of it is refundable. Qualifying expenses include tuition, fees, and course materials. The credit phases out at higher incomes. You'll use the information from Form 1098-T (from your school) to claim it on Form 8863.