Don’t Overlook These Tax Credits for College
College students—or their parents— may be eligible for one of two tax credits that help offset the cost of tuition and other higher education expenses.


Question: I’ll have two children in college this year – my daughter is starting her junior year, and my son will be a freshman. Can I take the American Opportunity Credit for expenses for both of them?
Answer:
Yes, as long as you meet the income requirements. The American Opportunity Credit is worth up to $2,500 per student for each of his or her first four years of college. It’s calculated as 100% of the first $2,000 paid toward a student’s eligible expenses plus 25% of the next $2,000 spent. Eligible expenses include tuition, required fees and course materials. Room and board don’t count.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The student must be enrolled at least half-time in a program that leads to a degree, certificate or other recognized education credential.
To qualify for this credit in 2017, your adjusted gross income must be less than $180,000 if you’re married and file taxes jointly, or $90,000 if you file as single or head of household. The amount of the credit starts to phase out for joint filers who earn more than $160,000, and single filers or heads of household who earn $80,000.
You can claim the credit by filing IRS Form 8863 with your tax return. For more information, see Instructions for Form 8863.
Students who go to school less than half-time, are in graduate school or take other eligible courses may qualify for the Lifetime Learning Credit. The credit is worth 20% of the first $10,000 spent on eligible expenses for the year – or a maximum of $2,000 per tax return (not per student.) There is no limit on the number of years you can take this credit, but you can’t claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same tax year.
To qualify, your adjusted gross income must be less than $132,000 for joint filers, or $66,000 for single filers and heads of household. The amount of the credit starts to phase out if you earn more than $112,000 if married filing jointly or $56,000 for single filers.
For more information about the rules, see IRS Publication 970 Tax Benefits for Education.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
The Rubber Duck Rule of Retirement Tax Planning
Retirement Taxes How can you identify gaps and hidden assumptions in your tax plan for retirement? The solution may be stranger than you think.
-
No Passport? No Problem. Seven US Getaways That Feel Like an International Vacation
From Puerto Rico’s Caribbean flair to Santa Fe’s old world charm, these American destinations deliver a global travel experience — without the hassle of customs or currency exchange.
-
What’s the New 2026 Estate Tax Exemption Amount?
Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
IRS Updates 2026 Tax Deduction for People Age 65 and Older
Tax Changes Adjustments to the extra standard deduction can impact the tax bills of millions of older adults. Here are some new amounts to know for 2026.
-
Child Tax Credit, EITC, & More: Three IRS Tax Breaks Getting Bigger Soon
Tax Credits Key family tax breaks are higher for 2026, including the Earned Income Tax Credit and the Adoption Credit. Here's what they're worth.
-
Standard Deduction 2026 Amounts Are Here
Tax Breaks What is the standard deduction for your filing status in 2026?
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
New Tax Rules: Income the IRS Won’t Touch in 2025
Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. High-income earners could also get hit by a 'surprise' tax bill.
-
Tax Brackets 2025 Quiz: How Much Do You Know?
Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.