There are several differences and some similarities between the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). You can claim these two benefits on the same return but not for the same student or the same qualified expenses. See Education benefits - No double benefits allowed for more information on claiming one or more education benefits.
Tax year 2024 education benefits comparison
Limit on MAGI* for single, head of household, or qualifying widow(er)
| Criteria | AOTC | LLC |
|---|---|---|
| Maximum benefit | Up to $2,500 credit per eligible student | Up to $2,000 credit per return |
| Refundable or nonrefundable | 40% of credit (refundable) | Not refundable |
| Limit on MAGI* for married filing jointly | $180,000 | $180,000 |
| $90,000 | $90,000 | |
| If married, can you file a separate return? | No | |
| Dependent status | Cannot claim benefit if someone else can claim you as a dependent on their return | |
| Can you or your spouse be a nonresident alien? | No, unless nonresident alien is treated as resident alien for tax purposes (see Publication 519 for information on nonresident alien status) | |
| Number of years of post-secondary education available | Only if student hasn't completed 4 years of post-secondary education before 2024 | All years of post-secondary education and for courses to acquire or improve job skills |
| Number of tax years benefit available | 4 tax years per eligible student (includes any years former Hope credit claimed) | Unlimited |
| Type of program required | Student must be pursuing a degree or other recognized education credential | Student does not need to be pursuing a degree or other recognized education credential |
| Number of courses | Student must be enrolled at least half time for at least one academic period beginning in 2024 | Available for one or more courses |
| Felony drug conviction | Students must have no felony drug convictions as of the end of 2024 | Does not apply |
| Qualified expenses | Tuition, required enrollment fees and course materials needed for course of study | Tuition and fees required for enrollment or attendance |
| For whom can you claim the benefit? |
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| Who must pay the qualified expenses? |
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| Payments for academic periods |
Made in 2024 for academic periods beginning in 2024 or the first 3 months of 2025 |
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| Do I need to claim the benefit on a schedule or form? |
Yes, Schedule 3 of Form 1040 PDF and Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) PDF |
Yes, Schedule 3 of Form 1040 PDF and Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) PDF |
ˆ Third party-qualified education expenses paid by a third party for you or a student you claimed as a dependent on your return are considered paid by you for the AOTC and LLC. Payments by third parties include amounts paid by relatives or friends.
* MAGI, modified adjusted gross income: For most people, MAGI is the amount of AGI, adjusted gross income, shown on your tax return. If you file Form 1040 or Form 1040SR, AGI is on line 11 and you add back the following:
- Foreign earned income exclusion,
- Foreign housing exclusion,
- Foreign housing deduction,
- Exclusion of income by bona fide residents of American Samoa, and
- Exclusion of income by bona fide residents of Puerto Rico.
If you need to adjust your AGI to find your MAGI, there are worksheets in the Publication 970 to help you.
Resources
Education credits
- What you need to know about AOTC and LLC
- Compare education credits
- Qualified education expenses
- Education credits: Questions and answers
- No double benefits allowed
- Eligible educational institution
- Education credits tweets
- American Opportunity Tax Credit
- AOTC key messages
- Education credits products
- Education credits—AOTC and LLC
- Lifetime Learning Credit
- Tax benefits for education: Information center
Useful forms and publications
- Publication 970, Tax Benefits for Education
- Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
- Form 8863 instructions
- Form 1098-T, Tuition Statement
- Form 1098-E and T Instructions
Education credit marketing materials
- Publication 4772, American Opportunity Tax Credit PDF
- Publication 5081, Education Credits Online Resource Guide PDF
- Publication 5198, Are you or a family member attending college or taking courses to acquire or improve job skills? PDF
Tax tips
- Tax tip 2022-38, Two tax credits that can help cover the cost of higher education
- Tax tip 2022-123, College students should study up on these two tax credits