Are you completing four-year higher education? If yes, you will be happy to know that you can claim the $2,500 AOTC and a refund of up to $1,000. Read this article thoroughly to check who you can claim it from, when you can expect payout, and more.
$2500 American Opportunity Tax Credit
The AOTC is a tax credit for the students who pursue a four-year higher education course; one can claim it with the tax return annually for a frequent year. If you claim this credit, you can get a refund in your bank account—if the tax you owe is below the full credit.
If you are among those who are pursuing four-year higher education, you can claim this tax credit. If you have not yet filed the 2025 returns, you can claim it by October 15, 2025. If you already have filed the return for tax year 2024, you need to file an amended return.
Who is eligible to claim AOTC?
For the American Opportunity Tax Credit for the tax year 2024, it is mandatory that you meet the following eligibility requirements:
- You must be a permanent resident of the US and living in any state, and
- You are pursuing a four-year degree or higher education course.
Additionally, it is mandatory that you must not exceed the MAGI (modified adjusted gross income), whose details can be found from the table available below.
| Filing Status | Full Credit Available | Partial Credit (Phase-Out Range) | No Credit Allowed |
| Single | $80,000 or less | $80,001 – $90,000 | $90,000 or more |
| Head of Household | $80,000 or less | $80,001 – $90,000 | $90,000 or more |
| Qualifying Widow(er) | $80,000 or less | $80,001 – $90,000 | $90,000 or more |
| Married Filing Jointly | $160,000 or less | $160,001 – $180,000 | $180,000 or more |
If you are married and going to file 2025 returns as married filing separately, you can’t claim the American Opportunity Tax Credit or get any refund from the IRS.
How to claim the AOTC?
The step-by-step instructions to claim the American Opportunity Tax Credit by filing 2025 returns are available below.
- Go to the official website of the Internal Revenue Service at IRS.gov/.
- Find and click on the option that reads ‘IRS Free File,’ under the section of Tools & Applications.
- Now, you need to find and click on the ‘Use Fillable Forms’ option.
- After clicking on the above-mentioned option, you will be redirected to https://freefilefillableforms.com/.
- Here, you need to create an account and log in. If you already have an account, then log in directly.
- After logging, provide all the required details, attach documents, choose the direct deposit to get a refund, and hit the Submit button to file a claim.
When to expect the refund?
The Internal Revenue Service is releasing the refund for the tax year 2024 within 21 days after the filing. If you file your 2025 returns electronically and claim AOTC today, you can expect to receive your refund directly in your bank account through the direct deposit.
After e-filing for the tax year 2024 return, the IRS will receive it within 24 hours, and then within a week it will be accepted. Once the IRS has accepted the refund, it takes hardly 10 days to send the refund; the refund is received in the bank account within 24 hours.
How to check refund status?
To check the AOTC refund status, please follow the step-by-step instructions.
- Navigate to Where’s My Refund? tool by visiting irs.gov/wheres-my-refund.
- Click on the ‘Check your refund’ button.
- Fill in your Social Security Number.
- Choose the tax year as 2024.
- Opt for the filing status as Single, Married-Filing Joint Return, Married-Filing Separate Return, Head of Household, or Qualifying Widow(er)/Surviving Spouse.
- Enter the refundable amount.
- Click the Submit button.
After going through the instructions given above, you will successfully have checked that your refund is received, accepted, or sent.
Disclaimer: The $2,500 American Opportunity Tax Credit information is for reference only. Actual eligibility and amounts are determined by the IRS.
