A modification of the former Hope Scholarship Tax Credit, AOTC provides up to $2,500 a year for eligible postsecondary education expenses including course materials, with gross income limitations and up to 40% of the credit being refundable.
The Hope Scholarship Credit was a tax credit that provided financial assistance for higher education expenses but was replaced in 2008 by the American Opportunity Tax Credit.
A Tuition Tax Credit is a non-refundable credit offered by the federal government that can be used to offset the cost of college education by reducing the amount of tax owed.
