How the American Opportunity Tax Credit Saves College Costs in 2026

Episode 141 of The Tax Strategy Podcast breaks down the American Opportunity Tax Credit (AOTC) — a refundable credit worth up to $2,500 per undergraduate student. Lucas explains the eligibility rules, income phaseouts (starting at $180,000 MAGI for joint filers), and qualifying expenses like tuition and books. Luna asks about the Lifetime Learning Credit, dependent claiming, and coordination with 529 plans. A 2026 case study shows how a family with a community college student can pocket the full credit. The hosts also discuss Form 8863 and 1098-T requirements. Listeners learn one concrete way to reduce their tax bill while supporting higher education. #AmericanOpportunityTaxCredit #AOTC #TaxCredits #CollegeSavings #EducationTaxBreaks #FinancialAid #TaxPlanning #Form8863 #1098T #LifetimeLearningCredit #TuitionDeduction #RefundableCredit #TaxRefund #StudentTaxes #Finance #TaxStrategy #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo