Education credits - AOTC and LLC

An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC).

Don’t overlook these important credits.

Who can claim an education credit?

There are additional rules for each credit, but you must meet all three of the following for both:

1. You, your dependent or a third party pays qualified education expenses for higher education.
2. An eligible student must be enrolled at an eligible educational institution.
3. The eligible student is yourself, your spouse or a dependent you list on your tax return.

Who cannot claim an education credit?

You cannot claim an education credit when:

• Someone else, such as your parents, list you as a dependent on their tax return
• Your filing status is married filing separately
• You already claimed or deducted another higher education benefit using the same student or same expenses (see Education Benefits: No Double Benefits Allowed for more information)
• You (or your spouse) were a non-resident alien for any part of the year and did not choose to be treated as a resident alien for tax purposes (find more information in Publication 519, U.S. Tax Guide for Aliens)

Compare the education credits

The education credits have some similarities but some very important differences. Find out which credit you qualify for, see our handy chart to compare the education credits.

• Find out more about the American opportunity tax credit
• Find out more about the lifetime learning credit

Use our interactive app

Our interactive app, "Am I Eligible to Claim an Education Credit?" helps you determine if you are eligible for education credits and deductions.

What should I do if I receive a letter from the IRS or I’m audited?

Taxpayer rights

You will benefit from knowing your rights as a taxpayer and being familiar with the IRS's obligations to protect them. The goal of the Taxpayer Bill of Rights is to inform you of your rights during every step of your interaction with the IRS.

Did you receive a letter?

If you receive a letter or are audited by the IRS, it may be because the IRS did not receive a Form 1098-T, Tuition Statement PDF , verifying the student’s enrollment or we need additional information to support the amounts of qualified expenses you reported on Form 8863 PDF . Review your Form 1098-T to make sure the student’s name and social security number are correct. If they do not match, contact the school to correct the information for future 1098-T reporting. If the student should have and did not receive the Form 1098-T, contact the school for a copy. Note: There are a few exceptions in which educational institutions are not required to furnish Form 1098-Ts.

If you claimed expenses that were not reported on the Form 1098-T in Box 1 as amounts paid or if your school reported the amount you were charged for qualified expenses in Box 2, please send us copies of paid receipts, cancelled checks or other documents as proof. See your letter for further instructions for what documents to send. If you do not have the letter, see our page Forms 886 May Help You for the Forms 886-H-AOC and 886-H-AOC-MAX for examples. Form 886-H-AOC is also available in Spanish.

Audit and examination process

IRS selects income tax returns for examination identified by computer programs showing a return has incorrect amounts. The examination may or may not result in a change to your tax or credits.

Use the following links for additional information:

• Publication 3498-A, The Examination Process (Examinations by Mail) PDF
• Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund PDF

Education benefit resources

Information for Schools, Community and Social Organizations on our Refundable Credits Toolkit

Tax Preparer Due Diligence Information on our Tax Preparer Toolkit

Watch out for these common errors made when claiming education credits

• Students listed as a dependent or spouse on another tax return
• Students who don’t have a Form 1098-T showing they attended an eligible educational institution
• Students claimed for whom qualified education expenses were not paid
• Claiming the credit for a student not attending a college or other higher education

Find more answers to the questions you ask about the education credits

More education benefit resources

• Education Credits: AOTC and LLC
• American Opportunity Tax Credit
• Lifetime Learning Credit
• Compare Education Credits
• Interactive App: "Am I Eligible to Claim an Education Credit?"
• No Double Benefits Allowed
• Qualified Education Expense
• Eligible Educational Institution
• Tax Benefits for Education: Information Center

Technical Forms and Publications

• Publication 970, Tax Benefits for Education PDF
• Form 8863, Education Credit PDF
• Form 8863 Instructions PDF
• Form 1098-T, Tuition Statement PDF
• Forms 1098-E and T Instructions PDF

Education Credit Marketing Resources

• Publication 4772 American Opportunity Tax Credit Flyer PDF
• Publication 5081 Education Credits On-line Resource PDF
• Publication 5198 Are you or a family member attending college or taking courses to acquire or improve job skills? PDF

Tax Tips

• Tax Tip 2022-38 Two tax credits that can help cover the cost of higher education
• Tax Tip 2022-123 College students should study up on these two tax credits