Alex
AOTC$2,500.00AOTC amount after phase-out
- Net qualified expenses
- $4,500.00
- Selected credit
- AOTC
FORM EDU-2026 · EDUCATION CREDIT ELIGIBILITY REPORTREV. OCT 2026
Education Credits Eligibility Calculator (2026)
Compare American opportunity and lifetime learning credit eligibility for up to four students, including the 2026 MAGI phase-out and refundable amount.
Last updated: November 5, 2026
Phase-out context
| Single / HoH / QSS | $80,000 – $90,000 |
|---|---|
| MFJ | $160,000 – $180,000 |
| MFS | Not eligible |
Context only — thresholds per Rev. Proc. 2025-32 / Form 8863. Never enters the credit math.
FORM EDU-2026 · EDUCATION CREDIT ELIGIBILITY REPORT
Your 2026 credit estimate
ESTIMATED · NOT ADVICE
ILLUSTRATION · NOT OFFICIAL
ILLUSTRATION · NOT OFFICIAL
Total education credits$2,500.00
- Refundable portion
- $1,000.00
- Nonrefundable portion
- $1,500.00
- AOTC after phase-out
- $2,500.00
- LLC after phase-out
- $0.00
Amounts shown are estimates. The total may include both credits for different students; one student cannot receive both in the same year.
Documentation checklist
- Form 1098-T is required to claim an education credit.
- The educational institution's EIN is required for the AOTC.
- IRS rules may allow a scholarship to be included in income by election; evaluate the tax effect before making that choice.
FAQ
Can I claim both education credits on one return?
Yes. A return may claim the American opportunity credit for one student and the lifetime learning credit for another. The same student cannot receive both credits for the same year.
How does tax-free assistance affect expenses?
Qualified expenses must be reduced by tax-free scholarships, Pell grants and tax-free 529 distributions applied to those expenses. Do not use the same expense or assistance twice.
What makes a student eligible for the AOTC?
The student must not have completed the first four years of postsecondary education, must be enrolled at least half-time in a degree program, must not have a disqualifying federal or state felony drug conviction from the academic period, and must not be a nonresident alien.
Is the lifetime learning credit refundable?
No. The lifetime learning credit is nonrefundable. The AOTC is 40% refundable under the modeled rules, subject to its per-student limit and the return's phase-out fraction.
Methodology
Credit structure. This illustration follows the structure of Form 8863 (2025), Table 1 and IRC §25A. The AOTC is up to $2,500 per eligible student: 100% of the first $2,000 of net qualified expenses plus 25% of the next $2,000. Forty percent is refundable, up to $1,000 per student, and the credit is generally limited to four tax years per student.
Lifetime learning credit. The LLC is 20% of up to $10,000 in net qualified expenses across LLC students on the return, for a maximum of $2,000 per return. It is nonrefundable and has no modeled year limit. Both credits may appear on one return, but not for the same student in the same tax year.
Eligibility and expenses. AOTC eligibility uses the first-four-years, half-time degree-program, felony-drug-conviction and nonresident-alien inputs. For this illustration, LLC eligibility applies the nonresident-alien rule only. Net expenses are qualified expenses less tax-free assistance, floored at zero. AOTC qualified expenses may include required course materials even if not purchased from the institution; LLC books, supplies and equipment count only when required to be paid to the institution.
MAGI phase-out. The 2026 phase-out is modeled linearly from $80,000 to $90,000 for Single, Head of household and Qualifying surviving spouse, and from $160,000 to $180,000 for Married filing jointly. The same fraction applies to AOTC and LLC. Married filing separately is ineligible for both credits. The phase-out context shown above is informational; the thresholds are applied in the calculation.
Documents and planning. Form 1098-T is generally required and the institution's EIN is needed for AOTC. IRS instructions allow certain scholarship amounts to be included in income by election; this calculator does not model that election. Confirm each student's AOTC four-tax-year history before relying on an estimate. This is an illustration only, not tax advice.
Sources: IRC §25A; IRS Form 8863 (2025), Table 1 and instructions; IRS Publication 970. Thresholds shown are the approved 2026 illustration parameters.Last updated: November 5, 2026 · 2026 education credit eligibility illustration