2022 American Opportunity Credit
For 2022, the American Opportunity Credit figures are $2,500 (Maximum credit), $2,000 (Expenses credited in full), $2,000 (Further expenses credited in part) and 3 more figures below.
Effective 2022-01-01Source: Publication 970 (2022), Tax Benefits for Education (IRS)Verified 2026-09-03
Compared with 2021
Every figure on this page is unchanged from 2021.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Maximum credit | $2,500 | $2,500 | +$0 (+0.0%) |
| Expenses credited in full | $2,000 | $2,000 | +$0 (+0.0%) |
| Further expenses credited in part | $2,000 | $2,000 | +$0 (+0.0%) |
| Rate on the further expenses | 25% | 25% | +0% (+0.0%) |
| MAGI limit, single filers | $90,000 | $90,000 | +$0 (+0.0%) |
| MAGI limit, joint filers | $180,000 | $180,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who pay qualified education expenses for an eligible student in 2022
What changed this year, and why
The American Opportunity Credit for 2022 is up to $2,500 per eligible student. The credit covers a percentage of qualified education expenses, which include tuition, required enrollment fees, and course materials. The student must not have completed the first four years of postsecondary education, must be enrolled at least half-time, and must be pursuing a degree or recognized credential. The credit is available for a maximum of four tax years per student. A portion of the credit may be refundable; the remainder is nonrefundable.
Common questions
- What is the maximum American Opportunity Credit for 2022?
- Up to $2,500 per eligible student.
- Is any part of the credit refundable?
- A portion of the credit may be refundable; the rest is nonrefundable.
Every amount on this page is a published figure rather than yours. The American Opportunity Credit calculator takes the number you enter and works it out against them, showing which published figure it used.
40% of the credit is refundable, the rest only offsets tax
For the 2022 American Opportunity Credit published by the IRS, 40% of the credit is refundable and the remaining portion is nonrefundable. The maximum credit is $2,500 per eligible student. The refundable part means that even if a taxpayer owes no federal income tax, they can still receive a refund of a share of the credit. The nonrefundable part can only be used to reduce the taxpayer's federal income tax liability to zero; any excess beyond that is simply lost and does not carry forward. The credit itself is computed from qualifying education expenses: the first $2,000 of expenses is credited in full, and a further $2,000 of expenses is credited at a rate of 25%, which together can produce the full $2,500 credit. Because only the refundable portion can result in a payment to a taxpayer who has no tax liability, understanding which share is refundable and which is nonrefundable is important when estimating the actual benefit of the credit.
40% of credit may be refundable; the rest is nonrefundable
Publication 970 (2022), Tax Benefits for Education (IRS)
The income at which you lose the credit entirely
The American Opportunity Credit phases out based on modified adjusted gross income. You can't claim the credit if your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more if married filing jointly). This is the income threshold at which the credit is completely eliminated. The credit also gradually reduces as income approaches these limits, though the exact phase-out range requires additional calculation. MAGI is generally your adjusted gross income with certain modifications. This income limitation applies regardless of whether the student meets all other eligibility requirements such as enrollment status, degree program requirements, or academic progress. Taxpayers with income at or above these thresholds cannot claim any portion of the American Opportunity Credit for 2022, whether refundable or nonrefundable.
Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more if married filing jointly). MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit.
Publication 970 (2022), Tax Benefits for Education (IRS)
The same student can be claimed in only four tax years
The American Opportunity Credit can only be claimed for a student for a limited number of years. The student didn't have expenses that were used to figure an American opportunity credit in any 4 earlier tax years. This means that once the credit has been claimed for a student in four prior tax years, that student is no longer eligible for the credit in subsequent years, regardless of whether they are still pursuing education or meeting other eligibility requirements. The four-year limit applies per student, not per taxpayer, so if multiple family members claim the credit for the same student across different years, those years count toward the limit. This restriction ensures the credit is available only during the typical undergraduate timeframe and prevents indefinite claims for students who take extended time to complete their education.
The student didn't have expenses that were used to figure an American opportunity credit in any 4 earlier tax years.
Publication 970 (2022), Tax Benefits for Education (IRS)
What counts as having finished the first four years
To qualify for the American Opportunity Credit in 2022, the student must not have completed the first 4 years of postsecondary education before the tax year begins. This generally means the freshman through senior years of college, as determined by the eligible educational institution. The determination is made by the school, not by the IRS or the taxpayer. Importantly, academic credit awarded solely because of the student's performance on proficiency examinations is not counted toward completing these four years. This means that advanced placement credits or CLEP exam credits that were granted without taking actual coursework do not count against the four-year limit. The credit remains available as long as the institution classifies the student as not having completed the first four years as of the beginning of 2022. The maximum credit during these years is $2,500, calculated as the full amount on the first $2,000 of expenses plus 25% on the next $2,000.
the student had not completed the first 4 years of postsecondary education before 2022
Publication 970 (2022), Tax Benefits for Education (IRS)
Half-time enrollment in a degree program is required
Enrollment status is a key requirement for the American Opportunity Credit. This means the student must be pursuing a formal program that results in a recognized qualification, not just taking individual courses. The half-time enrollment requirement must be met for at least one academic period during the year, but the student does not need to maintain half-time status for the entire year. This requirement distinguishes the American Opportunity Credit from other education benefits that may have different enrollment standards. Students enrolled less than half-time or in non-degree programs do not qualify for this credit.
For at least one academic period beginning in 2022 (or the first 3 months of 2023 if the qualified expenses were paid in 2022), the student was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential.
Publication 970 (2022), Tax Benefits for Education (IRS)
A felony drug conviction disqualifies the student
A criminal conviction can disqualify a student from the American Opportunity Credit. As of the end of 2022, the student had not been convicted of a federal or state felony for possessing or distributing a controlled substance. This means that any felony drug conviction under federal or state law as of the end of the tax year makes the student ineligible for the credit, regardless of when the conviction occurred or whether other eligibility requirements are met. The disqualification applies to both possession and distribution offenses. This requirement reflects policy decisions about education benefits and criminal convictions. The student must have no such felony conviction as of the end of 2022 to qualify for the credit for that tax year. Even if all other requirements are satisfied, including enrollment status, income limits, and education level, a felony drug conviction prevents claiming the credit.
As of the end of 2022, the student had not been con- victed of a federal or state felony for possessing or distributing a controlled substance.
Publication 970 (2022), Tax Benefits for Education (IRS)
Pay in December for a term that starts by March, and it counts in the earlier year
For the 2022 American Opportunity Credit, an academic period that begins in the first 3 months of 2023 is treated as beginning in 2022 if the qualified education expenses for that period were paid in 2022. This means that if you pay tuition in December 2022 for a spring 2023 semester that starts in January, February, or March 2023, those expenses count toward your 2022 credit. The IRS treats the spring semester as if it began in the earlier year for eligibility and expense purposes. This rule applies only when the expenses are actually paid in the earlier calendar year; simply enrolling in the course in 2022 is not enough - the payment must occur in 2022. This prepaid expense rule is specific to the American Opportunity Credit and helps taxpayers capture expenses for early-year terms in the prior tax year.
For 2022, treat an academic period beginning in the first 3 months of 2023 as if it began in 2022 if qualified education expenses for the student were paid in 2022 for that academic period.
Publication 970 (2022), Tax Benefits for Education (IRS)
You must provide the school's EIN on Form 8863
To claim the 2022 American Opportunity Credit, you must provide the educational institution's employer identification number (EIN) on your Form 8863. The EIN is typically available on Form 1098-T, which the school furnishes to you, or you can obtain it directly from the institution. Without the school's EIN on Form 8863, the credit cannot be claimed. This requirement applies to every student for whom you claim the American Opportunity Credit. You must also otherwise qualify for the benefit, be able to demonstrate that you or a dependent were enrolled at an eligible educational institution, and substantiate the payment of qualified tuition and related expenses. The IRS reminds taxpayers of this requirement in the Reminders section at the start of the American Opportunity Credit chapter in Publication 970.
2. American Opportunity Credit Reminders Educational institution's EIN required. To claim the American opportunity credit, you must provide the educa- tional institution's employer identification number (EIN) on your Form 8863. You should be able to obtain this infor- mation from Form 1098-T or the educational institution.
Publication 970 (2022), Tax Benefits for Education (IRS)
You can claim it for one student and the lifetime learning credit for another in the same year
The American Opportunity Credit and the Lifetime Learning Credit can be claimed for different students in the same tax year. If you pay qualified education expenses for multiple students, you may claim the American Opportunity Credit for one student and the Lifetime Learning Credit for another student in the same year. You cannot, however, claim both credits for the same student in the same year. This flexibility allows families with multiple students to optimize their education credits by assigning each student to the credit for which they qualify best. The adjusted qualified education expenses of a student for whom you do not claim the American Opportunity Credit can be used in figuring the Lifetime Learning Credit. This per-student, per-year basis ensures that each student's expenses are counted toward only one of the two credits. The maximum American Opportunity Credit is $2,500 per student, based on $2,000 of expenses credited in full plus another $2,000 credited at 25%.
If you pay qualified education expenses for more than one student in the same year, you can choose to claim certain credits on a per-student, per-year basis. This means that, for example, you can claim the American op- portunity credit for one student and the lifetime learning credit for another student in the same year.
Publication 970 (2022), Tax Benefits for Education (IRS)
Claim it when you are not eligible, and you can be banned for years
If you claim the 2022 American Opportunity Credit when you are not eligible, you may be banned from claiming the credit for 2 or 10 years depending on your conduct. The length of the ban depends on whether the improper claim was due to reckless or intentional disregard of the rules or due to fraud. A 2-year ban applies for reckless or intentional disregard, while a 10-year ban applies for fraud. During the ban period, you cannot claim the American Opportunity Credit for any student. This penalty underscores the importance of verifying eligibility before claiming the credit, as the consequences can extend for many years.
Ban on claiming the American opportunity credit. If you claim the American opportunity credit even though you're not eligible, you may be banned from claiming the credit for 2 or 10 years depending on your conduct. See chapter 2.
Publication 970 (2022), Tax Benefits for Education (IRS)
Filing separately from your spouse blocks the credit entirely
For the 2022 American Opportunity Credit, married taxpayers who file separate returns are barred from claiming the credit entirely. Even if one spouse paid all the qualified education expenses, the couple cannot split or share the credit by filing separately; the credit is only available to those filing as single, head of household, qualifying widow(er), or married filing jointly. The IRS lists this filing-status rule as the first of several conditions that disqualify a taxpayer from the credit. The other conditions include being claimed as a dependent, having modified adjusted gross income at or above the phase-out thresholds, being a nonresident alien without a qualifying election, or lacking the required Social Security or taxpayer identification number by the return due date. Because the separate-filing rule is an absolute block - not a phase-out or partial reduction - couples who might otherwise benefit from the credit should be aware that choosing married filing separately eliminates eligibility before any income test is applied.
You can't claim the American opportunity credit for 2022 if any of the following apply. • Your filing status is married filing separately.
Publication 970 (2022), Tax Benefits for Education (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 970 (2022), Tax Benefits for Education (IRS)
- Maximum credit
Maximum credit Up to $2,500 credit per eligible student
- Expenses credited in full
100% of the first $2,000 of qualified education expen- ses you paid for the eligible student
- Further expenses credited in part
25% of the next $2,000 of qualified education expen- ses you paid for that student
- Rate on the further expenses
25% of the next $2,000 of qualified education expen- ses you paid for that student
- MAGI limit, single filers
Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying surviving spouse
- MAGI limit, joint filers
Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying surviving spouse