American Opportunity Credit

If you meet the requirements to claim an education credit (see the instructions for Schedule 3, line 3), enter on line 29 the amount, if any, from Form 8863, line 8. You may be able to increase an education credit and reduce your total tax or increase your tax refund if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income. See Pub. 970 and the Instructions for Form 8863 for more information.

Form 8862 required.

You must file Form 8862 to claim the American opportunity credit if your American opportunity credit for a year after 2015 was denied or reduced for any reason other than a math or clerical error. Attach a completed Form 8862 to your 2025 return to claim the credit for 2025. Don’t file Form 8862 if you filed Form 8862 for 2024 and the American opportunity credit was allowed for that year. See Form 8862 and its instructions for details.

If you claim the American opportunity credit even though you aren’t eligible and it is determined that your error is due to reckless or intentional disregard of the American opportunity credit rules, you won’t be allowed to take the credit for 2 years even if you’re otherwise eligible to do so. If you claim the American opportunity credit even though you aren’t eligible and it is determined that you fraudulently claimed the credit, you won’t be allowed to take the credit for 10 years. You may also have to pay penalties.