What is the American Opportunity Credit applicable to?

The American Opportunity Credit is specifically designed to benefit individuals pursuing higher education at qualified postsecondary educational institutions. This credit allows eligible students or their parents to offset a portion of the costs associated with the first four years of higher education. Qualified expenses can include tuition, required fees, and course materials.

Postsecondary institutions refer to colleges, universities, and eligible vocational schools that provide education beyond high school. This credit is aimed at making higher education more affordable, encouraging students to enroll in and complete their college education. Unlike other educational options, such as public schools or nonprofit organizations, the American Opportunity Credit is directly linked to the pursuit of postsecondary degrees or recognized credentials from accredited colleges and universities.