American Opportunity Credit vs. Lifetime Learning Credit -What's the Difference?
Maximize Your Education Tax Benefits by Choosing the Right Credit
If you’re paying for higher education, you might be eligible for tax credits that reduce your tax bill—possibly by thousands. The two most common are the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC).
But which one is right for you?
🏆 American Opportunity Credit (AOC)
Worth up to $2,500 per year
Available only for the first 4 years of higher education
Must be at least half-time enrolled
Covers tuition, required books, and course materials
Partially refundable (up to $1,000)
🌱 Lifetime Learning Credit (LLC)
Worth up to $2,000 per return
No limit on the number of years claimed
Available for part-time students and grad programs
Covers tuition and required fees only
Non-refundable (only reduces tax liability)
🚦Which Should You Choose?
If you’re an undergrad in your first 4 years, AOC is usually best.
If you’re in grad school, part-time, or beyond 4 years, LLC may apply.
