This article was updated for Tax Year 2023, last edited on December 21st, 2023.
You can claim both the American Opportunity Credit (AOTC) and the Lifetime Learning Credit (LLC) on the same return, but not for the same student or the same qualified expenses.
The American Opportunity Tax Credit (AOTC) allows eligible students to claim a credit for qualifying educational expenses during their first four years of higher education. A maximum annual credit of $2,500 is available for each eligible student.
The Lifetime Learning Credit (LLC) is a credit that can be used for qualified tuition and associated costs for eligible students enrolled in an eligible educational institution. This credit can be used to offset the cost of undergraduate, graduate, and professional degree programs, as well as programs to develop or enhance employment skills. The number of years you can use the credit is unlimited. A maximum credit of $2,000 is available.
What are the differences between the American Opportunity Tax Credit and the Lifetime Learning Credit?
Per the IRS, there are several differences and some similarities between the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). See "No Double Benefits Allowed" for more information on claiming one or more education benefits.
Please refer to the table here for more information.
Additional Resources:
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by April and April is not responsible for, and has no control over, their content, privacy policies, or terms of service.