American Opportunity Tax Credit
What it is:
The American Opportunity Tax Credit (formerly known as the Hope Tax Credit) is a tax credit available to college students or their parents to help pay for college expenses.
How it works (Example):
The full tax credit is available to individuals whose modified adjusted gross income (AGI) is less than $80,000 or married couples filing jointly with modified AGI of under $160,000. The credit is phased out for taxpayers with incomes above these levels.