Can I claim both the AOTC and LLC in the same year?

Yes — on the same tax return, for different students. You cannot claim BOTH credits for the SAME student in the same year. The calculator automatically picks the more valuable of the two per student.

What are 'qualified education expenses' for AOTC vs LLC?

AOTC covers tuition, required fees, AND required course materials (books, supplies, equipment) even if not bought from the school. LLC covers tuition and required fees, which include books, supplies and equipment only when they must be paid to the school as a condition of enrollment. Room and board never qualify for either. Reduce your expenses by tax-free scholarships, Pell grants, and employer assistance before entering.

How does the 529-plan coordination work?

You cannot 'double dip.' The same dollar of tuition can't fund a tax-free 529 withdrawal AND count toward the AOTC/LLC. Best practice: pay the first $4,000 of tuition out of pocket to secure the full $2,500 AOTC, then use the 529 for the remaining tuition, fees, room, and board.

Why is MFS ineligible?

IRC §25A(g)(6) explicitly bars married-filing-separately taxpayers from claiming either credit. If you're MFS, no education credit is available for you or your dependents on that return.

What is the refundable portion of the AOTC?

40% of the AOTC (up to $1,000 per student) is refundable — meaning you get it even if you owe zero federal tax. Exception (IRC §25A(i)): none of it is refundable if, at the end of the year, you (the person claiming the credit) were under 18, or were 18 or a full-time student under 24 with earned income of no more than half your support, at least one of your parents was alive, and you don't file a joint return. The whole credit is then non-refundable. The LLC is 100% non-refundable.

Credits & Education

Education Tax Credits Calculator

Model the American Opportunity Credit (AOTC) and Lifetime Learning Credit (LLC) per student. The calculator picks the more valuable credit for each student and applies the MAGI phase-out.

IRS-Sourced

Updated August 24, 2026Reviewed for 2025 & 2026 tax years

IRC §25A · Form 8863

One credit per student, per year. You can mix AOTC for one child and LLC for another on the same return, but never both for the same student. Enter each student separately. See the full guide for the 529 coordination rules and the $4,000 carve-out strategy.

How much education tax credit will I get?

Total education credit: $2,500 ($1,000 refundable, $1,500 non-refundable). AOTC portion: $2,500. LLC portion: $0. MAGI phase-out factor: 100%.

AOTC max is $2,500 per student, only for the first 4 years of postsecondary education and for no more than 4 tax years per student (IRC §25A(b)(2)); 40% (up to $1,000) is refundable, unless the claimant is a young person the kiddie-tax rules cover (IRC §25A(i)).
LLC max is $2,000 per return (not per student), 100% non-refundable, no year limit.
Phase-out band: $80,000–$90,000 MAGI (single / HOH / QSS).
MFS filers are ineligible for both credits (IRC §25A(g)(6)).
From 2026, both credits need a work-valid SSN for you (or one spouse on a joint return) and for each dependent student; ITINs no longer qualify (IRC §25A(g)(1)).

Source:IRC §25A · Form 8863 instructions

Your return

Filing status

Modified AGI (MAGI)

Phase-out band: $80,000–$90,000. Credit remaining: 100%.

You (or one spouse, if filing jointly) have an SSN valid for work

Required from tax year 2026, issued by the return's due date including extensions. An ITIN no longer qualifies (IRC §25A(g)(1)).

You (the person claiming the credit) are under 24 and meet the conditions below

At year end you were under 18, or 18 or a full-time student under 24 with earned income of no more than half your support, and at least one parent was alive (the kiddie-tax conditions). Then none of the AOTC is refundable (IRC §25A(i)). Parents claiming the credit for a child leave this off.

Students

Only you, your spouse (joint return), or a dependent you claim on this return. If someone else claims the student as a dependent, they claim the credit.

Who is the student?

Tuition, fees and materials paid to the school (net of scholarships)

Required books, supplies and equipment bought elsewhere (AOTC only)

Years of college the student had completed before January 1, 2026

Years as determined by the school. A student who started senior year in fall 2025 had completed 3.

Tax years AOTC was already claimed for this student (by anyone)

Count every earlier year anyone (you, a parent, or the student) claimed the AOTC for this student.

At least half-time, in a program leading to a degree, certificate or other recognized credential (for at least one term starting this year)

Felony drug conviction

Student has an SSN valid for work

Required from 2026 unless the student is you or your spouse.

Per-student breakdown

Form 8863

Student	AOTC	LLC (alloc)	Best	Refundable
Student 1	$2,500	$0	$2,500 (AOTC)	$1,000
Total	$2,500	$0	$2,500	$1,000

Planning insight: to secure the full $2,500 AOTC, pay the first $4,000 of tuition per AOTC-eligible student out of pocket. Only then tap a 529 plan for the remaining tuition, fees, room, and board — the same dollar cannot fund both a tax-free 529 withdrawal AND the credit.

Sources & References

Primary references used for this content

IRC §25A

Internal Revenue Code §25A — Hope and Lifetime Learning credits

Statutory basis for AOTC and LLC — amounts NOT inflation-indexed.

View on law.cornell.edu

Form 8863

Instructions for Form 8863 (Education Credits)

How to compute and claim AOTC and LLC on the return.

View on irs.gov

Pub 970

IRS Publication 970 — Tax Benefits for Education

Interaction rules with scholarships, 529 plans, and other benefits.

View on irs.gov

✓3 primary sources; links re-checked on a weekly rotation by the source watcher

Related Tools & Guides

529 Plan Calculator Tax Bracket Calculator Child Tax Credit Calculator Education Tax Credits Guide (AOTC vs LLC)529 State Tax Deductions & Credits Tax Brackets Guide

Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.