{"identifier":"/us/usc/t26/s25A","title":26,"num":"\u00a7\u202f25A.","heading":"American Opportunity and Lifetime Learning credits","text":"\u00a7\u202f25A.\nAmerican Opportunity and Lifetime Learning credits\n(a)\nAllowance of credit\nIn the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the amount equal to the sum of\u2014\n(1) the American Opportunity Tax Credit, plus\n(2) the Lifetime Learning Credit.\n(b)\nAmerican Opportunity Tax Credit\n(1)\nPer student credit\nIn the case of any eligible student for whom an election is in effect under this section for any taxable year, the American Opportunity Tax Credit is an amount equal to the sum of\u2014\n(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus\n(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.\n(2)\nLimitations applicable to American Opportunity Tax Credit\n(A)\nCredit allowed only for 4 taxable years\nAn election to have this section apply with respect to any eligible student for purposes of the American Opportunity Tax Credit under subsection (a)(1) may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to such student for any 4 prior taxable years.\n(B)\nCredit allowed for year only if individual is at least \u00bd time student for portion of year\nThe American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an individual unless such individual is an eligible student for at least one academic period which begins during such year.\n(C)\nCredit allowed only for first 4 years of postsecondary education\nThe American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution.\n(D)\nDenial of credit if student convicted of a felony drug offense\nThe American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for qualified tuition and related expenses for the enrollment or attendance of a student for any academic period if such student has been convicted of a Federal or State felony offense consisting of the possession or distribution of a controlled substance before the end of the taxable year with or within which such period ends.\n(3)\nEligible student\nFor purposes of this subsection, the term \u201celigible student\u201d means, with respect to any academic period, a student who\u2014\n(A) meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 (\n20 U.S.C. 1091(a)(1)\n(B) is carrying at least \u00bd the normal full-time work load for the course of study the student is pursuing.\n(4)\nRestrictions on taxpayers who improperly claimed American Opportunity Tax Credit in prior years\n(A)\nTaxpayers making prior fraudulent or reckless claims\n(i)\nIn general\nNo American Opportunity Tax Credit shall be allowed under this section for any taxable year in the disallowance period.\n(ii)\nDisallowance period\nFor purposes of subparagraph (A), the disallowance period is\u2014\n(I) the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer\u2019s claim of the American Opportunity Tax Credit under this section was due to fraud, and\n(II) the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer\u2019s claim of the American Opportunity Tax Credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).\n(B)\nTaxpayers making improper prior claims\nIn the case of a taxpayer who is denied the American Opportunity Tax Credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no American Opportunity Tax Credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.\n(c)\nLifetime Learning Credit\n(1)\nPer taxpayer credit\nThe Lifetime Learning Credit for any taxpayer for any taxable year is an amount equal to 20 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished during any academic period beginning in such taxable year) as does not exceed $10,000.\n(2)\nSpecial rules for determining expenses\n(A)\nCoordination with American Opportunity Tax Credit\nThe qualified tuition and related expenses with respect to an individual who is an eligible student for whom a\n1\n1 So in original. Probably should be \u201can\u201d.\n(B)\nExpenses eligible for Lifetime Learning Credit\nFor purposes of paragraph (1), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the individual.\n(d)\nLimitations based on modified adjusted gross income\n(1)\nIn general\nThe American Opportunity Tax Credit and the Lifetime Learning Credit shall each (determined without regard to this paragraph) be reduced (but not below zero) by the amount which bears the same ratio to each such credit (as so determined) as\u2014\n(A) the excess of\u2014\n(i) the taxpayer\u2019s modified adjusted gross income for such taxable year, over\n(ii) $80,000 ($160,000 in the case of a joint return), bears to\n(B) $10,000 ($20,000 in the case of a joint return).\n(2)\nModified adjusted gross income\nFor purposes of this subsection, the term \u201cmodified adjusted gross income\u201d means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.\n(e)\nElection not to have section apply\nA taxpayer may elect not to have this section apply with respect to the qualified tuition and related expenses of an individual for any taxable year.\n(f)\nDefinitions\nFor purposes of this section\u2014\n(1)\nQualified tuition and related expenses\n(A)\nIn general\nThe term \u201cqualified tuition and related expenses\u201d means tuition and fees required for the enrollment or attendance of\u2014\n(i) the taxpayer,\n(ii) the taxpayer\u2019s spouse, or\n(iii) any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151,\nat an eligible educational institution for courses of instruction of such individual at such institution.\n(B)\nException for education involving sports, etc.\nSuch term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual\u2019s degree program.\n(C)\nException for nonacademic fees\nSuch term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual\u2019s academic course of instruction.\n(D)\nRequired course materials taken into account for American Opportunity Tax Credit\nFor purposes of determining the American Opportunity Tax Credit, subparagraph (A) shall be applied by substituting \u201ctuition, fees, and course materials\u201d for \u201ctuition and fees\u201d.\n(2)\nEligible educational institution\nThe term \u201celigible educational institution\u201d means an institution\u2014\n(A) which is described in section 481 of the Higher Education Act of 1965 (\n20 U.S.C. 1088\n(B) which is eligible to participate in a program under title IV of such Act.\n(g)\nSpecial rules\n(1)\nIdentification requirement\n(A)\nSocial security number requirement\nNo credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year\u2014\n(i) such individual\u2019s social security number, and\n(ii) in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer\u2019s spouse, the name and social security number of such individual.\n(B)\nInstitution\nNo American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year.\n(C)\nSocial security number defined\nFor purposes of this paragraph, the term \u201csocial security number\u201d shall have the meaning given such term in section 24(h)(7).\n(2)\nAdjustment for certain scholarships, etc.\nThe amount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced (before the application of subsections (b), (c), and (d)) by the sum of any amounts paid for the benefit of such individual which are allocable to such period as\u2014\n(A) a qualified scholarship which is excludable from gross income under section 117,\n(B) an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or under chapter 1606 of title 10, United States Code, and\n(C) a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for such individual\u2019s educational expenses, or attributable to such individual\u2019s enrollment at an eligible educational institution, which is excludable from gross income under any law of the United States.\n(3)\nTreatment of expenses paid by dependent\nIf a deduction under section 151 with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual\u2019s taxable year begins\u2014\n(A) no credit shall be allowed under subsection (a) to such individual for such individual\u2019s taxable year,\n(B) qualified tuition and related expenses paid by such individual during such individual\u2019s taxable year shall be treated for purposes of this section as paid by such other taxpayer, and\n(C) a statement described in paragraph (8) and received by such individual shall be treated as received by the taxpayer.\n(4)\nTreatment of certain prepayments\nIf qualified tuition and related expenses are paid by the taxpayer during a taxable year for an academic period which begins during the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year.\n(5)\nDenial of double benefit\nNo credit shall be allowed under this section for any expense for which a deduction is allowed under any other provision of this chapter.\n(6)\nNo credit for married individuals filing separate returns\nIf the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer\u2019s spouse file a joint return for the taxable year.\n(7)\nNonresident aliens\nIf the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall apply only if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013.\n(8)\nPayee statement requirement\nExcept as otherwise provided by the Secretary, no credit shall be allowed under this section unless the taxpayer receives a statement furnished under section 6050S(d) which contains all of the information required by paragraph (2) thereof.\n[(h)\nRepealed. Pub. L. 116\u2013260, div. EE, title I, \u00a7\u202f104(a)(2), Dec. 27, 2020, 134 Stat. 3041]\n(i)\nPortion of American Opportunity Tax Credit made refundable\nForty percent of so much of the credit allowed under subsection (a) as is attributable to the American Opportunity Tax Credit (determined after application of subsection (d) and without regard to this paragraph\n2\n2 So in original. Probably should be \u201cthis subsection\u201d.\n(j)\nRegulations\nThe Secretary may prescribe such regulations as may be necessary or appropriate to carry out this section, including regulations providing for a recapture of the credit allowed under this section in cases where there is a refund in a subsequent taxable year of any amount which was taken into account in determining the amount of such credit.","url":"https://projectusc.org/usc/t26/s25A.html","content":[{"t":"sec","id":"/us/usc/t26/s25A","children":[{"t":"num","text":"\u00a7\u202f25A."},{"t":"heading","text":"American Opportunity and Lifetime Learning credits"},{"t":"subsec","id":"/us/usc/t26/s25A/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Allowance of credit"},{"t":"chapeau","text":"In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the amount equal to the sum of\u2014"},{"t":"para","id":"/us/usc/t26/s25A/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the American Opportunity Tax Credit, plus","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the Lifetime Learning Credit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"American Opportunity Tax Credit"},{"t":"para","id":"/us/usc/t26/s25A/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Per student credit"},{"t":"chapeau","text":"In the case of any eligible student for whom an election is in effect under this section for any taxable year, the American Opportunity Tax Credit is an amount equal to the sum of\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Limitations applicable to American Opportunity Tax Credit"},{"t":"subpara","id":"/us/usc/t26/s25A/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Credit allowed only for 4 taxable years"},{"t":"content","children":[{"t":"p","text":"An election to have this section apply with respect to any eligible student for purposes of the American Opportunity Tax Credit under subsection (a)(1) may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to such student for any 4 prior taxable years.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Credit allowed for year only if individual is at least \u00bd time student for portion of year"},{"t":"content","children":[{"t":"p","text":"The American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an individual unless such individual is an eligible student for at least one academic period which begins during such year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Credit allowed only for first 4 years of postsecondary education"},{"t":"content","children":[{"t":"p","text":"The American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for a taxable year with respect to the qualified tuition and related expenses of an eligible student if the student has completed (before the beginning of such taxable year) the first 4 years of postsecondary education at an eligible educational institution.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Denial of credit if student convicted of a felony drug offense"},{"t":"content","children":[{"t":"p","text":"The American Opportunity Tax Credit under subsection (a)(1) shall not be allowed for qualified tuition and related expenses for the enrollment or attendance of a student for any academic period if such student has been convicted of a Federal or State felony offense consisting of the possession or distribution of a controlled substance before the end of the taxable year with or within which such period ends.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Eligible student"},{"t":"chapeau","text":"For purposes of this subsection, the term \u201celigible student\u201d means, with respect to any academic period, a student who\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/b/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 (","children":[{"t":"ref","text":"20 U.S.C. 1091(a)(1)","href":"/us/usc/t20/s1091/a/1","tail":"), as in effect on the date of the enactment of this section, and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" is carrying at least \u00bd the normal full-time work load for the course of study the student is pursuing.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Restrictions on taxpayers who improperly claimed American Opportunity Tax Credit in prior years"},{"t":"subpara","id":"/us/usc/t26/s25A/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Taxpayers making prior fraudulent or reckless claims"},{"t":"clause","id":"/us/usc/t26/s25A/b/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"No American Opportunity Tax Credit shall be allowed under this section for any taxable year in the disallowance period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s25A/b/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Disallowance period"},{"t":"chapeau","text":"For purposes of subparagraph (A), the disallowance period is\u2014"},{"t":"subclause","id":"/us/usc/t26/s25A/b/4/A/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer\u2019s claim of the American Opportunity Tax Credit under this section was due to fraud, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s25A/b/4/A/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer\u2019s claim of the American Opportunity Tax Credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Taxpayers making improper prior claims"},{"t":"content","children":[{"t":"p","text":"In the case of a taxpayer who is denied the American Opportunity Tax Credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no American Opportunity Tax Credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Lifetime Learning Credit"},{"t":"para","id":"/us/usc/t26/s25A/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Per taxpayer credit"},{"t":"content","children":[{"t":"p","text":"The Lifetime Learning Credit for any taxpayer for any taxable year is an amount equal to 20 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished during any academic period beginning in such taxable year) as does not exceed $10,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Special rules for determining expenses"},{"t":"subpara","id":"/us/usc/t26/s25A/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Coordination with American Opportunity Tax Credit"},{"t":"content","children":[{"t":"p","text":"The qualified tuition and related expenses with respect to an individual who is an eligible student for whom a\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201can\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201can\u201d.","tail":" American Opportunity Tax Credit under subsection (a)(1) is allowed for the taxable year shall not be taken into account under this subsection."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Expenses eligible for Lifetime Learning Credit"},{"t":"content","children":[{"t":"p","text":"For purposes of paragraph (1), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the individual.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Limitations based on modified adjusted gross income"},{"t":"para","id":"/us/usc/t26/s25A/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The American Opportunity Tax Credit and the Lifetime Learning Credit shall each (determined without regard to this paragraph) be reduced (but not below zero) by the amount which bears the same ratio to each such credit (as so determined) as\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/d/1/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" the excess of\u2014"},{"t":"clause","id":"/us/usc/t26/s25A/d/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the taxpayer\u2019s modified adjusted gross income for such taxable year, over","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s25A/d/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" $80,000 ($160,000 in the case of a joint return), bears to","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/d/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" $10,000 ($20,000 in the case of a joint return).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Modified adjusted gross income"},{"t":"content","children":[{"t":"p","text":"For purposes of this subsection, the term \u201cmodified adjusted gross income\u201d means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Election not to have section apply"},{"t":"content","children":[{"t":"p","text":"A taxpayer may elect not to have this section apply with respect to the qualified tuition and related expenses of an individual for any taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s25A/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Qualified tuition and related expenses"},{"t":"subpara","id":"/us/usc/t26/s25A/f/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201cqualified tuition and related expenses\u201d means tuition and fees required for the enrollment or attendance of\u2014"},{"t":"clause","id":"/us/usc/t26/s25A/f/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the taxpayer,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s25A/f/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the taxpayer\u2019s spouse, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s25A/f/1/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"at an eligible educational institution for courses of instruction of such individual at such institution.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/f/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception for education involving sports, etc."},{"t":"content","children":[{"t":"p","text":"Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual\u2019s degree program.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/f/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Exception for nonacademic fees"},{"t":"content","children":[{"t":"p","text":"Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual\u2019s academic course of instruction.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/f/1/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Required course materials taken into account for American Opportunity Tax Credit"},{"t":"content","children":[{"t":"p","text":"For purposes of determining the American Opportunity Tax Credit, subparagraph (A) shall be applied by substituting \u201ctuition, fees, and course materials\u201d for \u201ctuition and fees\u201d.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Eligible educational institution"},{"t":"chapeau","text":"The term \u201celigible educational institution\u201d means an institution\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/f/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" which is described in section 481 of the Higher Education Act of 1965 (","children":[{"t":"ref","text":"20 U.S.C. 1088","href":"/us/usc/t20/s1088","tail":"), as in effect on the date of the enactment of this section, and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/f/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" which is eligible to participate in a program under title IV of such Act.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Special rules"},{"t":"para","id":"/us/usc/t26/s25A/g/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Identification requirement"},{"t":"subpara","id":"/us/usc/t26/s25A/g/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Social security number requirement"},{"t":"chapeau","text":"No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year\u2014"},{"t":"clause","id":"/us/usc/t26/s25A/g/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" such individual\u2019s social security number, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s25A/g/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer\u2019s spouse, the name and social security number of such individual.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Institution"},{"t":"content","children":[{"t":"p","text":"No American Opportunity Tax Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which the taxpayer paid qualified tuition and related expenses taken into account under this section on the return of tax for the taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Social security number defined"},{"t":"content","children":[{"t":"p","text":"For purposes of this paragraph, the term \u201csocial security number\u201d shall have the meaning given such term in section 24(h)(7).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Adjustment for certain scholarships, etc."},{"t":"chapeau","text":"The amount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced (before the application of subsections (b), (c), and (d)) by the sum of any amounts paid for the benefit of such individual which are allocable to such period as\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/g/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a qualified scholarship which is excludable from gross income under section 117,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or under chapter 1606 of title 10, United States Code, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for such individual\u2019s educational expenses, or attributable to such individual\u2019s enrollment at an eligible educational institution, which is excludable from gross income under any law of the United States.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Treatment of expenses paid by dependent"},{"t":"chapeau","text":"If a deduction under section 151 with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual\u2019s taxable year begins\u2014"},{"t":"subpara","id":"/us/usc/t26/s25A/g/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" no credit shall be allowed under subsection (a) to such individual for such individual\u2019s taxable year,","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" qualified tuition and related expenses paid by such individual during such individual\u2019s taxable year shall be treated for purposes of this section as paid by such other taxpayer, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s25A/g/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" a statement described in paragraph (8) and received by such individual shall be treated as received by the taxpayer.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Treatment of certain prepayments"},{"t":"content","children":[{"t":"p","text":"If qualified tuition and related expenses are paid by the taxpayer during a taxable year for an academic period which begins during the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Denial of double benefit"},{"t":"content","children":[{"t":"p","text":"No credit shall be allowed under this section for any expense for which a deduction is allowed under any other provision of this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"No credit for married individuals filing separate returns"},{"t":"content","children":[{"t":"p","text":"If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer\u2019s spouse file a joint return for the taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Nonresident aliens"},{"t":"content","children":[{"t":"p","text":"If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall apply only if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s25A/g/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Payee statement requirement"},{"t":"content","children":[{"t":"p","text":"Except as otherwise provided by the Secretary, no credit shall be allowed under this section unless the taxpayer receives a statement furnished under section 6050S(d) which contains all of the information required by paragraph (2) thereof.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/h","children":[{"t":"num","text":"[(h)"},{"t":"heading","text":"Repealed. Pub. L. 116\u2013260, div. EE, title I, \u00a7\u202f104(a)(2), Dec. 27, 2020, 134 Stat. 3041]"},{"t":"content","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Portion of American Opportunity Tax Credit made refundable"},{"t":"content","children":[{"t":"p","text":"Forty percent of so much of the credit allowed under subsection (a) as is attributable to the American Opportunity Tax Credit (determined after application of subsection (d) and without regard to this paragraph\u202f","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original. Probably should be \u201cthis subsection\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201cthis subsection\u201d.","tail":" and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s25A/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"The Secretary may prescribe such regulations as may be necessary or appropriate to carry out this section, including regulations providing for a recapture of the credit allowed under this section in cases where there is a refund in a subsequent taxable year of any amount which was taken into account in determining the amount of such credit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}