How the American Opportunity Tax Credit Cuts College Costs

In Episode 18 of The Tax Strategy Podcast, Lucas and Luna break down the American Opportunity Tax Credit—a refundable credit worth up to $2,500 per student for qualified college expenses. They walk through the income phase-outs, what counts as a qualified expense, and the tricky rule about claiming the credit in the same year you use a 529 plan. Using a real example of a family earning $160,000 with one freshman, they calculate exactly how much the credit saves and why timing your 529 distribution matters. They also cover the Lifetime Learning Credit for graduate students and the rule against double-dipping. If you're paying tuition in 2026, this episode gives you one concrete number to check before you file next spring. #AmericanOpportunityTaxCredit #AOTC #CollegeTaxCredit #LifetimeLearningCredit #EducationTaxBreaks #TaxPlanning2026 #CollegeCosts #529Plan #QualifiedExpenses #RefundableCredit #TuitionTaxBreak #IncomePhaseOut #IRS #StudentTaxSavings #TaxStrategy #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo