AOTC vs Lifetime Learning Credit Calculator
Compare the American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) side by side for 2026. Enter your expenses, income, and student details to see which education tax credit saves you more.
Student 1
| AOTC | LLC | |
|---|---|---|
| Credit Amount | $2,500 | $1,000 |
| Refundable Portion | $1,000 | $0 (nonrefundable) |
| Nonrefundable Portion | $1,500 | $1,000 |
| Scope | Per student | Per return |
| Max Credit | $2,500/student | $2,000/return |
| Phaseout Applied | No | No |
| Year Limit | 4 years per student | Unlimited |
Student 1 — Year 2
| AOTC | LLC Contribution | |
|---|---|---|
| Eligible | Yes | Yes |
| Gross Credit | $2,500 | $5,000 in expenses |
| Net Credit | $2,500 | See LLC total below |
Lifetime Learning Credit — Return Total
| Total Qualified Expenses | $5,000 |
| Capped at $10,000 | $5,000 |
| Gross Credit (20%) | $1,000 |
| Net LLC Credit | $1,000 |
Refundability
AOTC is 40% refundable (up to $1,000 per student back even with $0 tax owed). LLC is entirely nonrefundable — it can only reduce tax you owe.
Per Student vs Per Return
AOTC is claimed per student (up to $2,500 each). LLC is per return (max $2,000 total regardless of student count).
Year Limits
AOTC is limited to the first 4 years of postsecondary education. LLC has no year limit — claim it for graduate school, professional development, or any year.
Enrollment Requirements
AOTC requires at least half-time enrollment pursuing a degree. LLC has no enrollment intensity or degree requirement.
AOTC Total
$2,500$1,000 refundable + $1,500 nonrefundable
LLC Total
$1,000Entirely nonrefundable
Frequently asked questions
Should I claim the AOTC or the Lifetime Learning Credit?
If you are in the first four years of college and enrolled at least half-time, the AOTC is usually better because it offers up to $2,500 per student and is 40% refundable. The LLC (up to $2,000 per return, nonrefundable) is better for graduate students, part-time learners, or anyone who has already used four years of AOTC.
Can I claim both AOTC and LLC in the same year?
You cannot claim both credits for the same student in the same tax year. However, if you have multiple students, you can claim the AOTC for one student and the LLC for a different student on the same return.
What are the income limits for education tax credits in 2025?
Both the AOTC and LLC phase out between $80,000 and $90,000 of modified adjusted gross income for single filers, and $160,000 to $180,000 for married filing jointly. Married filing separately filers cannot claim AOTC, and LLC phases out between $40,000 and $50,000 for MFS.
Is the AOTC refundable?
Yes, 40% of the AOTC is refundable up to $1,000 per student. This means even if you owe zero tax, you can still receive up to $1,000 back. The Lifetime Learning Credit is entirely nonrefundable.
How many years can I claim the AOTC?
The AOTC can only be claimed for 4 tax years per student. After that, you should switch to the Lifetime Learning Credit, which has no limit on the number of years it can be claimed.