Compare education credits

Qualifying taxpayers may claim 2 education credits: American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC).

Who can claim them

Check eligibility with our Interactive Tax Assistant.

Each credit is unique, but to claim either you must meet 3 requirements:

Student was enrolled at an eligible educational institution
Student was you, your spouse or a dependent on your tax return
You, your dependent or a third party (including a relative or friend) paid qualified education expenses for higher education

Third-party payer: If someone else paid for the student claimed on your return, the expenses are considered paid by you.

Who can’t claim them

AOTC or LLC can’t be claimed when:

Filing status is married filing separately
Same student or expenses are used to claim both credits
Student is listed on another return (example – parents claimed student as their dependent)
Taxpayer or spouse was a nonresident alien for any part of the year and didn’t choose to be treated as a resident alien for tax purposes

Forms to file

To claim education credits, you need to file 2 forms with the return that claims the credit:

Completed Form 8863
Form 1098-T, with some exceptions

Form 1098-T taxpayer help

Form 1098-T, Tuition Statement is from the educational institution. Contact the institution if the:

Student didn’t get it or needs a copy
Student’s name and Social Security number need to be corrected

Not all institutions are required to provide it. If you don’t receive Form 1098-T but are eligible for an education credit, you can claim AOTC or LLC without it by showing:

Student enrollment at an eligible educational institution
Payment of qualified tuition or expenses

If Form 1098-T isn’t submitted with a return, we may send a letter to verify student enrollment or get information about qualified expenses.

Tips for claiming AOTC

Avoid common errors when claiming AOTC with these tips:

Student must be enrolled at least half-time for an academic period in a post-secondary educational institution eligible to participate in a US Department of Education student aid program
Include institution’s Employer Identification Number (EIN) on return
Student and taxpayer each need taxpayer identification numbers (TINs) issued by the return due date (including extensions)
Student can be claimed for 4 tax years; the years don’t have to be consecutive. This includes any year the Hope credit was claimed for the same student
You may claim AOTC and LLC on the same return, but you can’t claim them for the same student or expenses (no double benefits allowed)
Courses can be online or abroad

Due diligence requirements

Paid tax preparers of federal returns must meet due diligence requirements when determining eligibility and amount of AOTC and head of household filing status.

Ask clients questions to verify student eligibility, and let them know if the IRS audits them, they need to have documents supporting their claim.