Lesson Summary

The American Opportunity and Lifetime Learning Credits are credits that allow taxpayers to claim all or a portion of qualified tuition and related expenses paid for higher education or job-related skills.

A taxpayer cannot claim:

• A deduction for higher education expenses and also claim an American Opportunity or Lifetime Learning Credit based on those same expenses
• Both American Opportunity Credit and a Lifetime Learning Credit for the same student in the same year
• A credit based on expenses paid with a tax-free scholarship, grant or employer-provided educational assistance

Who Cannot Claim the Credit?

• Married filing separate filing status
• Taxpayers listed as a dependent on another person's tax return
• Taxpayers whose modified AGI is more than the allowable income limits

The American Opportunity and Lifetime Learning Credits are claimed on Form 8863.