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.
Rating Newest Oldest. Best Answer: Before the American Opportunity credit was the Hope credit. The 4 year limit applies to both the Hope and the American Opportunity. So if you used 3 years of the AOC and 1 year of the Hope credit, you have exhausted your 4 year limit. So yes a 2008 high school grad may well be ineligible for the AOC this year.