Compare the American Opportunity Tax Credit (AOTC) vs Lifetime Learning Credit (LLC) to see which education tax credit saves you more on your 2025 federal return.
The IRS offers two major education tax credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Each credit has different rules around eligibility, refundability, income phaseouts, and what expenses qualify. Understanding your adjusted gross income (AGI) is key to determining your eligibility.
If you're trying to estimate your overall refund impact, run a quick check with our Refund vs. Owe Estimator. You may also qualify for the Saver's Credit if you're contributing to retirement while in school. For official rules, see the Federal Student Aid Tax Benefits guide.
Education credits are typically claimed on Form 8863. Below are official government resources and internal tools to help you maximize your education tax benefits.
Input qualified tuition/fees and (for AOTC) course materials.
Enter your MAGI so the calculator can apply phaseouts.
Enrollment status, degree program, and prior AOTC years matter.
See side-by-side results and a recommended credit.
| Feature | AOTC | Lifetime Learning |
|---|---|---|
| Maximum Credit | $2,500 per student | $2,000 per return |
| Refundable? | 40% (up to $1,000) | No |
| Years Available | First 4 years only | Unlimited |
| Enrollment | At least half-time | At least one course |
| Degree Required? | Yes | No |
| Single Phaseout | $80,000–$90,000 | $80,000–$90,000 |
| MFJ Phaseout | $160,000–$180,000 | $160,000–$180,000 |
Source: IRS Publication 970
We can align education credits with filing strategy, other credits, and withholding so your final return is optimized.
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