What is the American opportunity tax credit?
The American opportunity tax credit relates to qualified educational expenses that a family pays for an eligible student. The credit is only applicable to education expenses paid for the first four years of higher education.
The credit is limited to $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you.
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