AOTC
Business & Finance abbreviation · Tax
| Stands for | American Opportunity Tax Credit |
|---|---|
| Categories | Business & Finance |
AOTC stands for American Opportunity Tax Credit, a tax abbreviation.
Federal education credit worth up to $2,500 per eligible student for each of the first four years of higher education, covering 100% of the first $2,000 of qualified expenses and 25% of the next $2,000. Up to 40% of it, or $1,000, is refundable.
Example: The AOTC is worth more than the Lifetime Learning Credit, so claim it for her first four years.
Usage notes
Created in 2009 by the American Recovery and Reinvestment Act to replace the smaller Hope credit and made permanent in 2015. The student must be enrolled at least half-time in a degree program and have no felony drug conviction. It can be claimed for only four tax years per student, and course-required books and supplies count as qualified expenses.
Related abbreviations
More tax abbreviations
- 941 – Employer's Quarterly Federal Tax Return (IRS Form 941)
- 990 – Return of Organization Exempt From Income Tax (IRS Form 990)
- ABN – Australian Business Number
- ACTC – Additional Child Tax Credit
- AGI – Adjusted gross income
- AMT – Alternative minimum tax
- AY – Assessment year
- CGT – Capital gains tax
- CP2000 – IRS Notice CP2000 (proposed adjustment to income tax return)
- CRS – Common Reporting Standard
- CTC – Child Tax Credit
- DAF – Donor-advised fund