Tax Benefits for Education›2025 Returns
! years after there was a final determination that
Publication 970 — Tax Benefits for Education · 2026-10-03 edition · updated 2026-10-04 · United States
CAUTION your claim was due to reckless or intentional dis-
regard of the rules, or 10 years after there was a final de- termination that your claim was due to fraud. If you disa- gree with the final determination, see the Instructions for Form 8862.
Table 2-1. Overview of the American Opportunity Credit for 2025
| Maximum credit | Up to $2,500 credit per eligible student |
|---|---|
| Limit on modified adjusted gross income (MAGI) |
$180,000 if married filing jointly; $90,000 if single, head of household, or qualifying surviving spouse |
| Refundable or nonrefundable | 40% of credit may be refundable; the rest is nonrefundable |
| Number of years of postsecondary education | AvailableONLY if the student had not completed the first 4 years of postsecondary education before 2025 (generally, the freshman through senior years, determined by the eligible educational institution, not including academic credit awarded solely because of the student’s performance on proficiency examinations) |
| Number of tax years credit available | AvailableONLY for 4 tax years per eligible student |
| Type of program required | Student must be pursuing a program leading to a degree or other recognized education credential |
| Number of courses | Student must be enrolled at least half-time for at least one academic period that begins during 2025 (or the first 3 months of 2026 if the qualified expenses were paid in 2025) |
| Felony drug conviction | As of the end of 2025, the student had not been convicted of a felony for possessing or distributing a controlled substance |
| Qualified expenses | Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance |
| Payments for academic periods | Payments made in 2025 for academic periods beginning in 2025 or beginning in the first 3 months of 2026 |
| TIN needed by filing due date | Filers and students must have been issued a TIN by the due date of their 2025 return (including extensions) |
| Educational institution’s EIN | You must provide the educational institution’s employer identification number (EIN) on your Form 8863 |
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