T.The topic of higher education often causes heated debate among residents. united states of americaThis is purely because the price of American college degrees is skyrocketing year by year, and that basic undergraduate education in the United States will become a luxury item that is only open to a limited number of individuals. because there is a fear
Another concern is growing student loan debt. Together, he estimates that 48 million Americans have over $1.5 trillion in outstanding debt. The topic of student loan forgiveness has dominated multiple news cycles as that amount is set to increase.
President Joe Biden and his administration introduced a student loan debt relief plan aimed at waiving up to $20,000 for those earning under $125,000, but the move was eventually blocked and the U.S. Supreme Court Its future hangs in the balance as the Court deliberates on its approval.
That said, there are other avenues that can be used to lower overall tuition fees at the undergraduate level.
What is the American Opportunity Tax Credit?
The American Opportunity Tax Credit (AOTC) is a tax credit issued by the IRS for expenses incurred in attending eligible students during their first four years of college.
The maximum amount you can receive is $2,500 per eligible student. Tax incentives are also open to those under $80,000 for single filers and under $160,000 for filing as a couple.
eligibility requirements
To claim AOTC, students must meet the following criteria:
- Pursue a degree or other recognized educational qualification
- Be enrolled at least half the time in at least one semester beginning in the tax year
- Have not completed the first four years of higher education at the beginning of the tax year
- Haven’t claimed AOTC or previous Hope credits in 4+ years
- Have no felony drug convictions at the end of the tax year
