The American Opportunity Tax Credit (AOTC) is an annual credit to relieve the financial burden of college for students who are enrolled between half-time and full-time at an institution of higher education. It can only be claimed for 4 years, and covers up to $2,500 of educational expenses per student (the first $2,000 of qualified expenses are automatically covered, followed by 25% of remaining expenses until the $2,500 limit is reached). The AOTC cannot be claimed if your modified adjusted gross income exceeds $90,000, and it cannot be combined with the Lifetime Learning Credit.