American Opportunity Credit or Lifetime Learning Credit?

Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits you can subtract in full from the federal income tax, not just deduct from taxable income.

If you've paid for the expenses to attend college for either you or a dependent, you may be eligible to receive either the American Opportunity Credit or the Lifetime Learning Credit. Both can reduce the amount you may owe, and the American Opportunity Credit is refundable up to $1,000.