How the American Opportunity Tax Credit Cuts College Costs

Episode 50 of The Tax Strategy Podcast breaks down the American Opportunity Tax Credit (AOTC), a dollar-for-dollar tax credit worth up to $2,500 per student for qualified college expenses. Lucas and Luna walk through the eligibility rules, income phaseouts, and how the 40 percent refundable portion helps families with little or no tax liability. They compare it to the Lifetime Learning Credit and explain why claiming the wrong credit on Form 8863 can cost you thousands. A concrete example shows how a family earning $160,000 can save $2,500 per year for four years of undergraduate tuition, fees, and course materials. If you're paying for college in 2026, this episode shows you exactly how to capture the credit before it expires at the end of 2026. #AmericanOpportunityTaxCredit #AOTC #TaxCredits #CollegeCosts #HigherEducation #Form8863 #LifetimeLearningCredit #RefundableCredit #TaxPlanning #EducationTaxBreaks #StudentLoans #TaxStrategy #FexingoBusiness #BusinessPodcast #Finance #TaxPodcast #CollegeSavings #IRS Keep every episode free: buymeacoffee.com/fexingo