American Opportunity Credit is an opportunity to reduce the cost of attending college for taxpaying students or their parents. This credit offer large amount of tax saving than tuition deduction American Opportunity tax credit is a credit for education expenses paid for eligible students. For eligible students maximum annual credit is $2500. American Opportunity Tax Credit : If you are paying tuition and fee for your educational institution then you are eligible for aotc credit. But eligible educational institutions can be more than just colleges and universities. The tax payer can include any post-secondary school it will fulfill the requirements to participate in the U.S. Department of Education financial aid program. The tax payer can include stationary supply and equipment or materials the student purchases that relate to the program of study when tax payer calculates his credit. You May also Like: What is Amendment Tax Return? Who can claim the American opportunity credit? American opportunity credit 2018: The tax payer or student who files the students as a dependent may eligible to take the credit on his tax return. You or taxpayer must fill the 8863 Form and attach to your tax return to claim the credit. The credit is not qualified who adjusted gross income for single tax payer is $90,000 and adjusted gross income for married filing jointly $180,000 thresholds.