A partly refundable federal tax credit for qualified education expenses during an eligible student's first four years of higher education.
Eligible student in the first four years of postsecondary educationTaxpayer entitled to claim an eligible student
Entitlement facts
Benefit type
Government benefit. A government-funded or administered benefit, service, coverage program, assistance program, or public access route. Taxonomy definition →
What it unlocks
Up to $2,500 per eligible student: 100% of the first $2,000 and 25% of the next $2,000 of qualified expenses, with up to 40% of the allowed credit refundable when the tax rules are met.
Who qualifies
Eligible student in the first four years of postsecondary education; Taxpayer entitled to claim an eligible student
Requirements
The student generally must pursue a degree or recognized credential, be enrolled at least half-time for at least one academic period, have no completed first four years before the tax year, and have no disqualifying felony drug conviction. Income limits, taxpayer and student identification numbers, eligible-institution, Form 1098-T, dependency, and no-double-benefit rules apply.
How to activate
Obtain Form 1098-T and records of qualified tuition, required fees, books, supplies, scholarships, and other aid; complete Form 8863 and claim the credit on the federal return.
Cost basis
No-cost access. The core benefit has no required payment, purchase, deposit, paid membership, or pre-existing paid-product relationship under the captured terms.
Cost and fees
There is no fee to claim the credit, but only qualified net expenses count, the credit phases out with income, and the same student or expense cannot support conflicting education benefits. Tuition and other education costs remain due except to the extent offset by aid or the eventual credit.
Geography
US, Eligible educational institutions, including some outside the United States
Personalization
Published eligibility is not described as individually targeted.
EVIDENCE / 1 SOURCE
Eligibility is conditional, not guaranteed.
Check the provider's final terms immediately before applying, depositing funds, spending, or changing a paid relationship.
Local federally funded community learning centers provide before-school, after-school, weekend, and summer academic enrichment, youth development, and family education, particularly for students at high-poverty and low-performing schools.
Condition
Variable by provider or eligibility
Personalized
No
002Verified
SU
Substance Abuse and Mental Health Services Administration · Government benefit
Free, confidential crisis support by call, text, or chat for people in suicidal, mental-health, or substance-use crisis and for people worried about someone else.
Condition
No-cost access
Personalized
No
003Verified
CI
City of Albuquerque Transit Department · Government benefit