College and Students

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The American Opportunity Credit pays you back, in the form of a credit, for 100% of your first $2,000 of qualified education expenses for yourself, your spouse, or your dependents paid in 2016. It also pays you back 25% of the next $2,000 you spend on higher education, for a total credit of $2,500 per student, per year.

American Opportunity Credit

To claim the American Opportunity Credit, the student must be in the first four academic years of postsecondary education at an eligible school. It doesn't matter how many calendar years the student has been in school, as long as he or she is in still the freshman, sophomore, junior, or senior year. The student must also be enrolled at least half-time in a program leading to a recognized credential, such as a degree, and cannot have had a felony conviction for possessing or distributing a controlled substance. You can only take this credit for a student for four years.

You may qualify to take the American Opportunity Credit regardless of the amount of tax you owe. Up to $1,000 of this credit is refundable. For example, say you had no income tax withheld and you owe no taxes. You could still get up to $1,000 back for the American Opportunity Credit if you meet the requirements. TaxAct calculates the credit, including any refundable portion, for you.

If you don't qualify because, for example you are not working on a degree or other credential, or you don't meet the half-time requirement, you may be able to take the Lifetime Learning Credit. This credit gives you 20% back of up to $10,000 in qualified expenses.

Lifetime Learning Credit

The maximum Lifetime Learning Credit you can take is $2,000, regardless of how many students are on your return.

You cannot claim the American Opportunity Credit and the Lifetime Learning Credit for the same student, in the same year.

TaxAct calculates your American Opportunity Credit and the Lifetime Learning Credit on Form 8863, Education Credits.


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Upcoming Tax Dates

October 9 — Everyone
Federal Holiday (Columbus Day) - Details

October 11 — Employees who work for tips
If you received $20 or more in tips during September, report them to your employer - Details

October 15 — Individuals
If you have an automatic 6-month extension to file your income tax return for 2017, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and penalties due - Details

October 15 — Corporations
File a 2017 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension Details

October 15 — Partnerships
Electing large partnerships: File a 2017 calendar year return (Form 1065-B). This due date applies only if you were given an additional 6-month extension - Details

October 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in September.

October 31 — Certain small employers
Deposit any undeposited tax if your tax liability is $2,500 or more for 2017 but less than $2,500 for the third quarter.

October 31 — Federal unemployment tax
Deposit the tax owed through 09-if more than $500.

October 31 — Social security, Medicare, and withheld income tax.
File Form 941 for the third quarter of 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules .If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until 11-10 to file the return.

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