Education Credit Calculator (AOTC & LLC)

2026

Compare American Opportunity and Lifetime Learning credits. See which saves more for your situation.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications

$
Student Level
$
Filing Status

AOTC Credit

$2,500.00

Lifetime Learning Credit

$1,200.00

Recommended

AOTC

American Opportunity Tax Credit (AOTC)

Credit per Student$2,500.00
Total Credit (1 student)$2,500.00
Refundable Portion (40%)$1,000.00
Non-Refundable Portion (60%)$1,500.00
Phase-Out AppliedNone

Lifetime Learning Credit (LLC)

Credit Amount$1,200.00
Max per Return$2,000 (not per student)
Refundable?No (non-refundable only)
Phase-Out AppliedNone

Credit Comparison

AOTC$2,500.00 (40% refundable)
LLC$1,200.00 (non-refundable)
Best ChoiceAOTC (higher credit, partially refundable)

Per-Student Cost Analysis

Qualified Expenses per Student$6,000.00
Total Qualified Expenses$6,000.00
Best Credit Available$2,500.00
Net Cost After Credit$3,500.00

Use the Education Credit Calculator (AOTC & LLC) above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Two federal credits can offset the cost of schooling, and they rarely deliver the same result. By running the numbers for both the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) against your 2026 education expenses, this tool shows which one cuts your tax bill the most for qualified tuition and related costs.

Eligibility comes first: the calculator checks each credit against your income and the student's status. The AOTC covers 100% of the first $2,000 of expenses plus 25% of the next $2,000, reaching a maximum of $2,500. The LLC instead returns 20% of the first $10,000 of expenses, topping out at $2,000. With both figures in hand, the tool sets them side by side.

Only one education credit may be claimed per student in a given tax year, so the comparison matters. For the AOTC specifically, required course materials count as qualified expenses even when you buy them somewhere other than the school, and overlooking them shortchanges your credit. Eligibility for the AOTC also hinges on the student not having finished the first four years of post-secondary education.

Example: Full-time undergraduate with $5,000 in expenses

  1. 1 Input: Student is in their second year of undergraduate studies, enrolled full-time. Total qualified education expenses are $5,000. Modified Adjusted Gross Income (MAGI) is below the phase-out thresholds for both credits.
  2. 2 Calculation for AOTC: (100% of $2,000) + (25% of the next $2,000) = $2,000 + $500 = $2,500. Calculation for LLC: 20% of $5,000 = $1,000.
  3. 3 Result: The American Opportunity Tax Credit yields $2,500, while the Lifetime Learning Credit yields $1,000. The AOTC provides greater savings in this scenario.
  4. 4 Context: The AOTC is more beneficial for students pursuing a degree in their first four years of higher education, especially with higher expenses. The LLC is more flexible, covering graduate studies and courses taken to acquire job skills, but offers a lower maximum credit.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is the difference between AOTC and LLC?
The American Opportunity Tax Credit (AOTC) is worth up to $2,500/year for the first 4 years of college and is 40% refundable. The Lifetime Learning Credit (LLC) is worth up to $2,000/year for any higher education and is non-refundable.
Who qualifies for the American Opportunity Tax Credit?
The AOTC requires enrollment at least half-time in the first 4 years of a degree program, and phases out at MAGI of $80,000-$90,000 (single) or $160,000-$180,000 (married) in 2026. Each student can claim it for a maximum of 4 tax years.
Can I claim an education credit and a 529 withdrawal?
Yes, but you cannot double-dip on the same expenses. Typically, you apply $4,000 of expenses toward the AOTC and use 529 funds for remaining tuition, room, and board costs.

You might also need

Federal Income Tax Calculator 2026 — Free IRS Tax Estimator

Calculate your 2026 federal income tax, bracket, effective rate, FICA, and take-home pay. Free, instant results based on official IRS rates and brackets.

Capital Gains Tax Calculator 2026 — Short & Long-Term Rates

Calculate short-term and long-term capital gains tax on stocks, real estate, and investments. Includes NIIT. Free, instant results based on 2026 IRS brackets.

Child Tax Credit Calculator 2026

Calculate your Child Tax Credit and Other Dependent Credit. See phase-out thresholds and net credit amount for your income.