Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

The American Opportunity Tax Credit (AOTC) was created in an effort to assist more parents and students, especially those of the middle class, in paying for college expenses. Qualifying students or their parents may receive a credit of up to $2,500 on their taxable income. This means that for four years of post-secondary education, individuals may report qualifying educational expenses in order to claim an AOTC. The American Opportunity Tax Credit was made permanent in the 2016 Omnibus bill. 

Maximum Credit: Up to $2,500 per eligible student ( up to 40% of the credit may be refundable)

Limit on modified adjusted gross income (MAGI): $180,000 for married couples filing jointly; $90,000 for individuals

Number of tax years credit is available: 4 tax years per eligible student (including any year(s) the Hope Scholarship was claimed)

Number of courses: Must be enrolled at least half-time

Qualified expenses: Tuition, required enrollment fee, and course materials that the student needs for a course of study

Calculating the amount of credit you are eligible for: 

Sum of:
1. 100% of the first $2,000 of qualified education expenses you paid for the eligible student; and
2. 25% of the next $2,000 of qualified education expenses you paid for the student. 

Information from the IRS Publication 970, “Tax Benefits for Education.” More information can be found in the Publication.