Oregon Tax Consultants Practice Exam

How much is the American Opportunity Credit per student in a household?

1. $1000

2. $2500

3. $3000

4. $4000

The correct answer is: $2500

The American Opportunity Credit provides a tax credit of up to $2,500 per eligible student for qualified education expenses paid for a student during the tax year. This credit is intended for students pursuing their first four years of higher education and is partially refundable, meaning you can receive a refund even if you do not owe taxes. The amount covered by the credit includes tuition, required fees, and course materials, making it a significant benefit for students and their families in offsetting the costs of higher education. This figure reflects both the maximum credit available and the purpose of the credit in supporting educational expenses.