AOTC vs Lifetime Learning Credit Calculator
Heading back to school? Enter your qualified education expenses, MAGI, and tax liability to compare the American Opportunity Tax Credit (up to $2,500, partially refundable) with the Lifetime Learning Credit (up to $2,000) for 2026.
How to use this calculator
- Enter qualified education expenses.
- Enter mAGI.
- Enter filing status.
- Enter tax liability before credits.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The AOTC is worth 100% of the first $2,000 of qualified expenses plus 25% of the next $2,000 — up to $2,500 per student per year. It requires at least half-time enrollment in the first four years of post-secondary education, and 40% of it (up to $1,000) is refundable, so you can get money back even with no tax liability. The Lifetime Learning Credit is 20% of up to $10,000 of expenses ($2,000 max per return) for any course at any age, but it is non-refundable. Worked example: $8,000 of expenses and $3,000 of tax liability as a single filer — the AOTC gives the full $2,500 (including $1,000 refundable), while the LLC caps at $1,600.
Frequently asked questions
Which credit should I claim?
Usually AOTC if the student is in their first four years of college and enrolled at least half-time — it is worth more ($2,500 vs $2,000) and 40% is refundable. The LLC is the fallback for graduate school, part-time study, or anyone past year four of a degree.
Can I claim both credits in the same year?
Not for the same student — you must choose one credit per student per year. A married couple filing jointly could claim AOTC for one student and the LLC for another, but each student can only use one credit in a tax year.
What counts as a qualified expense?
Tuition, fees, and course materials required for enrollment — including books and required supplies bought from the school. Room and board, transportation, and health insurance do not qualify, and you cannot double-dip expenses paid with tax-free scholarships or 529 distributions.
What is the income limit?
Both credits phase out between $80,000 and $90,000 of MAGI for single filers and $160,000–$180,000 for married filing jointly — the ranges are fixed by law and not inflation-adjusted. Above the top of the range, no credit at all.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.