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Differences Between the Two Credits
The amount of the American Opportunity Credit is gradually reduced as taxpayers' income increases.
There is no limit on the number of years the Lifetime Learning Credit can be claimed.
The differences between the two credits are summarized in this chart.
| American Opportunity Credit | Lifetime Learning Credit |
| Up to $2,500 credit per eligible student | Up to $2,000 credit per return |
| Available for first 4 years of postsecondary education, cannot be claimed more than 4 tax years | Available for all years of postsecondary education and for courses to acquire or improve job skills |
| Forty percent (40%) of credit may be refundable (Up to $1,000 even if no taxes are owed) | Nonrefundable credit |
| Student must be pursuing an undergraduate degree or other recognized education credential | Student does not need to be pursuing a degree or other recognized education credential |
| Student must enrolled at least half time for at least one academic period during the year | Available for one or more courses |
| No felony drug conviction on student's record | Felony drug conviction rule does not apply |
