$
$
Best Credit
$2,500
$2,500
Best Credit
AOTC
$2,500
LLC
$1,600
Refundable Amount
$1,000
Summary
Your best education credit is the AOTC at $2,500, with $1,000 refundable.
The AOTC provides up to $2,500 per student (100% of first $2,000 + 25% of next $2,000) for the first 4 years of college. 40% is refundable (up to $1,000).
The LLC provides up to $2,000 per return (20% of first $10,000 in expenses) with no limit on years. It is non-refundable.
The AOTC is your better option at $2,500 vs the LLC at $1,600. Plus, $1,000 of the AOTC is refundable.
AOTC$2,500
LLC$1,600
AOTC vs LLC Breakdown
6 rows
| Item | AOTC | LLC |
|---|---|---|
| Qualified Expenses | $8,000 | $8,000 |
| Eligible Expenses | $4,000 | $8,000 |
| Credit Before Phase-Out | $2,500 | $1,600 |
| Phase-Out Reduction | $0 | $0 |
| Final Credit | $2,500 | $1,600 |
| Refundable Portion | $1,000 | $0 |
Estimate based on federal education credit rules. You cannot claim both AOTC and LLC for the same student in the same year. Does not account for all eligibility requirements. Not tax advice.