The American Opportunity Tax Credit (AOTC) is:

• Worth a maximum benefit up to $2,500 per eligible student.
• Only available for the first four years at an eligible educational or vocational school.
• For students pursuing a degree or other recognized education credential.
• Partially refundable. Eligible taxpayers can get up to $1,000 of the credit as a refund, even if they do not owe any tax.

The Lifetime Learning Credit (LLC) is:

• Worth up to $2,000 per tax return, per year, no matter how many students qualify.
• Available for all years of postsecondary education and for courses to acquire or improve job skills.
• Available for an unlimited number of tax years

A form 1098-T from the educational institution is required to be eligible for the tax credits.   The tax credit can’t be claimed by someone who is listed as a dependent on another taxpayer’s tax return.  The AOTC and LLC can’t both be claimed by the same person in the same year.

The complete IRS Tax Tip about education tax benefits can be found here.