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Differences Between the Two Credits
The amount of the American Opportunity Credit is gradually reduced as taxpayers' income increases.
There is no limit on the number of years the Lifetime Learning Credit can be claimed.
The differences between the two credits are summarized in this chart.
| Lifetime Learning Credit | American Opportunity Credit |
| Up to $2,000 credit per return | Up to $2,500 credit per eligible student |
| Available for an unlimited number of years | Available only for the first four years of postsecondary education |
| Credit available for courses taken as part of a postsecondary degree program or to acquire or improve job skills (including noncredit courses and graduate-level work) | Must be pursuing a degree or other educational credential |
| Available for one or more courses | Must take at least half of the normal full-time workload for one academic period |
| Felony drug convictions rule does not apply | Felony drug conviction restriction |
| Credit is nonrefundable | 40% of credit is refundable |
