# Education tax credits and other individual credits for 2026

Source: https://taxbracketsdesk.com/other-credits
Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site
Topic: Education and Other Credits
Last updated: 2026-09-19

> There are two federal education tax credits for 2026: the American Opportunity Credit, worth up to $2,500 per student with $1,000 refundable, and the lifetime learning credit, worth up to $2,000 per return and nonrefundable. Both end at modified AGI of $90,000 ($180,000 joint) and are claimed on Form 8863. The home energy and EV credits are gone for 2026 purchases.

## Key facts

- American Opportunity Credit: Up to $2,500 per student, $1,000 refundable
- Lifetime learning credit: Up to $2,000 per return, nonrefundable
- Education credit income cutoff: MAGI $90,000 ($180,000 joint)
- Saver's credit maximum: $1,000 ($2,000 joint)
- Adoption credit 2026: Up to $17,670, of which $5,120 refundable
- Ended for 2026: Home energy credits and new, used and commercial EV credits

## What education tax credits are there for 2026?

Two education tax credits are available on 2026 returns filed in 2027: the **American Opportunity Credit (AOTC)** and the **lifetime learning credit (LLC)**. Both reduce federal income tax dollar for dollar for tuition and related costs paid to an eligible college, university or vocational school, and both are figured on Form 8863, Education Credits ([IRS Publication 970](https://www.irs.gov/pub/irs-pdf/p970.pdf)).

An education credit is a reduction in tax, not a deduction from income. A $2,000 credit saves $2,000 whatever your bracket, while a $2,000 deduction saves $240 for someone in the 12% bracket and $440 in the 22% bracket. That difference is why the credits matter more than any education deduction still on the books.

The older tuition and fees deduction is gone: Publication 970 notes it has not been available since the end of 2020. The two credits and the student loan interest deduction, up to $2,500 of interest for 2026, are what remain for most students and parents.

## American Opportunity Credit and lifetime learning credit compared

The American Opportunity Credit and lifetime learning credit differ in who they fit: the AOTC is built for the first four years of a degree, while the LLC covers graduate school, extra undergraduate years and single job-skills courses. When a student qualifies for both, the AOTC gives the larger result.

| Feature | American Opportunity Credit | Lifetime learning credit |
| --- | --- | --- |
| Formula | 100% of first $2,000 plus 25% of next $2,000 | 20% of up to $10,000 |
| Maximum | $2,500 per eligible student | $2,000 per tax return |
| Refundable part | 40%, up to $1,000 | None |
| Years allowed | 4 tax years per student | Unlimited |
| Enrollment | At least half-time, degree program | Any course at an eligible school |
| Books bought elsewhere | Count | Count only if paid to the school as a condition of enrollment |
| MAGI phaseout | $80,000 to $90,000 ($160,000 to $180,000 joint) | Same range |

AOTC vs LLC for the 2026 tax year

Here is how the same bill plays out under each credit. A single parent pays $3,000 of tuition for a first-year student and owes $300 of income tax before credits. The AOTC is $2,000 plus 25% of $1,000, or $2,250. Its refundable 40%, $900, is paid in full, and the other $1,350 is limited to the $300 of tax, for a total benefit of **$1,200**. The LLC on the same $3,000 is $600, limited to the $300 of tax, for a benefit of **$300**.

The full rules for each credit, including worked phaseout math, are on the [American Opportunity Credit](https://taxbracketsdesk.com/other-credits/american-opportunity-credit) and [lifetime learning credit](https://taxbracketsdesk.com/other-credits/lifetime-learning-credit) pages.

### New for 2026 returns: identification rules

Starting with tax year 2026, both education credits require a Social Security number valid for work, issued by the return's due date including extensions, and AOTC claims must show the school's employer identification number on Form 8863 ([Publication 505 (2026)](https://www.irs.gov/pub/irs-pdf/p505.pdf)). A return filed with an ITIN alone, or with a student who has no SSN, will not get either credit.

## Can I claim more than one education credit?

You can claim both education credits on one return, but only one credit per student per year. Parents with a sophomore and a graduate student can take the AOTC for the sophomore and the LLC for the graduate student in the same year, on separate Part III entries of Form 8863.

The rules that stop double benefits are strict. Publication 970 lists these limits:

- The same expenses cannot support both a credit and a tax-free 529 plan or Coverdell withdrawal. Use different dollars for each.
- Expenses paid with tax-free scholarships, Pell grants or tax-free employer educational assistance must be subtracted first.
- If a parent claims the student as a dependent, only the parent can claim the credit for that student, even when the student paid the bill.
- Married filing separately filers cannot claim either education credit.
- Both credits share the same income phaseout, so a family above $180,000 of joint MAGI gets neither.

> **Scholarship and the AOTC:** Publication 970 includes examples where a student chooses to treat part of a scholarship as taxable income so that more tuition is left to count for the AOTC. When the student's tax on that income is lower than the extra credit, the family comes out ahead. Run both versions before filing.

Start with Form 1098-T, Tuition Statement, which schools generally send by January 31. Box 1 shows payments received, but your own receipts decide what was paid in 2026, so reconcile the two before entering figures.

## Which tax credits for individuals are available in 2026?

Beyond education, the main federal tax credits for individuals on 2026 returns are the child tax credit, the earned income credit, the child and dependent care credit, the adoption credit and the saver's credit. Two groups of credits closed: the household energy credits and the clean vehicle credits.

| Credit | 2026 maximum | Refundable? | Status |
| --- | --- | --- | --- |
| American Opportunity Credit | $2,500 per student | Up to $1,000 | Available |
| Lifetime learning credit | $2,000 per return | No | Available |
| Saver's credit | $1,000 ($2,000 joint) | No | Available; retirement part replaced by Saver's Match from 2027 |
| Adoption credit | $17,670 per child | Up to $5,120 | Available |
| Child tax credit | $2,200 per child | Up to $1,700 per child | Available |
| Earned income credit | $8,231 with three or more children | Fully | Available |
| Child and dependent care credit | Rate up to 50% of $3,000 or $6,000 of costs | No | Available; higher top rate from 2026 |
| Residential clean energy and home improvement credits | None for 2026 work | Not applicable | Ended for property placed in service after Dec 31, 2025 |
| New, used and commercial clean vehicle credits | None for 2026 contracts | Not applicable | Ended for vehicles acquired after Sept 30, 2025 |

Main individual credits for tax year 2026 (Rev. Proc. 2025-32, Publication 505 and IRS credit pages)

### Saver's and adoption credits

The saver's credit pays 50%, 20% or 10% of up to $2,000 of retirement contributions and ends at 2026 AGI of $40,250 single, $60,375 head of household and $80,500 joint; the [saver's credit income limits](https://taxbracketsdesk.com/other-credits/savers-credit-income-limits) page has the full band table and the 2027 Saver's Match figures. The [2026 adoption credit](https://taxbracketsdesk.com/child-tax-credit/adoption-credit-2026) is now partly refundable, up to $5,120 per child.

Working parents who pay for daycare so they can work should check the [child and dependent care credit](https://taxbracketsdesk.com/child-tax-credit/child-dependent-care-credit), whose top rate rises from 35% to 50% for 2026 under the One Big Beautiful Bill Act.

## Which credits ended for 2026?

The Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025, and the new, used and commercial clean vehicle credits ended for vehicles acquired after September 30, 2025. All four end dates came from the One Big Beautiful Bill Act, signed July 4, 2025.

- Solar panels, home batteries, heat pumps, insulation and windows finished in 2026 earn no federal credit. Unused solar credit from 2025 or earlier can still carry into 2026. Details: [energy tax credits ended](https://taxbracketsdesk.com/other-credits/energy-tax-credits-ended).
- An electric vehicle contracted for in 2026 gets no credit. A buyer who signed a binding contract and paid something by September 30, 2025 can still claim for a 2026 delivery on Form 8936. Details: [EV tax credit ended](https://taxbracketsdesk.com/other-credits/ev-tax-credit-ended).
- The home EV charger credit, the Alternative Fuel Vehicle Refueling Property Credit, lasts only for chargers placed in service by June 30, 2026.

## Refundable vs nonrefundable credits: what is the difference?

A refundable credit is paid to you even when it is larger than your tax, while nonrefundable credits can only reduce your tax to zero. The distinction decides how much a credit is worth to a low-income household, and it explains why two families with identical credits can end up with very different refunds.

Nonrefundable credits share a single pool: your income tax before credits. On a 2026 return they flow through Schedule 3 (Form 1040) and are subtracted in a set order, and when the pool runs dry the rest are lost unless the credit has a carryforward, as the adoption and residential clean energy credits do. The education, saver's and child care credits have none.

### Worked example: a family with several credits

A married couple filing jointly has 2026 AGI of $120,000 and a 19-year-old dependent in her second year of college. Taxable income is $120,000 minus the $32,200 standard deduction, or $87,800. Tax is $2,480 on the first $24,800 plus 12% of the remaining $63,000, which is $7,560, for **$10,040**. The student is too old for the child tax credit but brings the $500 credit for other dependents. With $4,000 of qualified expenses and MAGI well under $160,000, the full $2,500 AOTC applies. Tax after credits: $10,040 minus $500 minus $2,500 = **$7,040**.

The same couple cannot use the saver's credit, because $120,000 is above the $80,500 joint ceiling. To see how credits change what you get back after withholding, try the [tax refund calculator](https://taxbracketsdesk.com/tax-calculators/tax-refund-calculator).

## Common questions

### Can I claim both the American Opportunity Credit and the lifetime learning credit?

Yes, on the same return for different students, but not both for the same student in the same year. Each student gets one credit, entered in its own Part III of Form 8863.

### Are education tax credits refundable?

Only the American Opportunity Credit is partly refundable, up to 40% or $1,000 per student. The lifetime learning credit is nonrefundable and can only reduce tax to zero.

### Who claims the education credit, the parent or the student?

Whoever claims the student as a dependent claims the credit. If the parents list the student as a dependent, only they can claim it, even if the student paid the tuition.

### Is there still a tuition and fees deduction?

No. IRS Publication 970 says the tuition and fees deduction is not available after 2020. The education credits and the student loan interest deduction remain.

### What is the income limit for education tax credits in 2026?

Both education credits shrink between $80,000 and $90,000 of modified AGI for single and head of household filers, and between $160,000 and $180,000 for joint filers. Above the top of the range neither is allowed.

### What tax credits can I get without children?

Adults without children may qualify for the education credits, the saver's credit, the earned income credit for workers without a qualifying child (up to $664 for 2026) and the adoption credit if they adopt.

## Sources

- [Publication 970, Tax Benefits for Education](https://www.irs.gov/pub/irs-pdf/p970.pdf)
- [Publication 505 (2026), Tax Withholding and Estimated Tax](https://www.irs.gov/pub/irs-pdf/p505.pdf)
- [Rev. Proc. 2025-32, 2026 inflation adjustments](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)
- [Retirement Savings Contributions Credit (Saver's Credit)](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit)
- [Clean Vehicle Tax Credits](https://www.irs.gov/clean-vehicle-tax-credits)