The credit is worth 100% of the first $2000 of qualified education expenses and 25% of the next $2000 of qualifying expenses, for a maximum credit of $2500 per eligible student.
Step-by-step explanation:
American opportunity tax credit is the opportunity given to the students who are in the United States of America. For being eligible for this tax credit, you are enrolled at least half time in a program that is leading to a degree, a certificate or other recognized credential.
A student can claim up to $2500 credit per year. The credit covers 100% of the first $2500 of qualified tuition, required fee and qualified expenses. Also included in it is the 25% of next $2000. 40% of the credit is refundable.