How the American Opportunity Tax Credit Works in 2026

Lucas and Luna break down the American Opportunity Tax Credit for 2026 — a refundable credit worth up to $2,500 per student for qualified education expenses. They explain the phaseout thresholds, eligible expenses, how the 40% refundable portion works for families with no tax liability, and a common trap where scholarship awards reduce the credit. Using a concrete example of a family with two college students, they show how to maximize the AOTC and coordinate with 529 plan distributions. A must-listen for parents and students navigating tuition bills this fall. #AmericanOpportunityTaxCredit #AOTC #TaxCredits #CollegeExpenses #EducationTax #TaxPlanning #StudentTaxes #TuitionTaxCredit #Fafsa #529Plan #ScholarshipTax #RefundableCredit #TaxSeason2026 #Finance #FexingoBusiness #BusinessPodcast #TaxStrategy #Podcast Keep every episode free: buymeacoffee.com/fexingo