the qualified expenses must be for higher education the tuition and fees deduction can reduce the amount of your income subject to tax by up to $ 4000 generally you can claim the tuition and fees deduction if all three of the following requirements are met1 you pay qualified education expenses of higher education2he tuition and fees deduction can reduce the amount of your income subject to tax by up to $ 4000 generally you can claim the tuition and fees deduction if all three of the following requirements are met 1
The American Opportunity Tax Credit (AOTC) is one of two tax credits available to students and those who claim them as dependents. It allows eligible students to reduce what they owe in taxes by up to $2,500 a year for tuition and related expenses.
The American Opportunity credit covers up to $2,500 of undergraduate costs. In 2009, Congress replaced the well-known Hope Scholarship credit with the more generous American Opportunity credit. The new credit is currently available through 2017. The American Opportunity credit equals 100% of the first $2,000 of a studentâs qualified education expenses plus 25% of the next $2,000. The maximum annual credit is $2,500.