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Case Study 2: American Opportunity CreditToby had receipts for books and supplies his first year at college. He spent $1,291 for required books, lab supplies, and rock-hunting equipment he needed for his introductory chemistry and geology courses. The school does not require that these books and equipment be purchased from the college in order to enroll. Are these qualified expenses for the American opportunity credit? Click here for an explanation. These are qualified expenses for the American opportunity credit. The American opportunity credit allows taxpayers to claim a credit of up to $2,500 based on qualified tuition and related expenses paid for each eligible student. The credit covers 100% of the first $2,000 and 25% of the second $2,000 of eligible expenses per student, up to the amount of tax. Forty percent of the American opportunity credit is a refundable credit, which means the taxpayer can receive up to $1,000 even if no taxes are owed. 
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