The American Opportunity Tax Credit allows families to claim an annual tax credit of up to $2,500 for each of the first four years of college for each eligible student. An eligible student must:

• Be enrolled at least half-time for at least one academic period beginning in the tax year
• Not have finished the first 4 years of higher education at the beginning of the tax year
• Not have claimed AOTC or the former Hope Credit for more than 4 tax years
• Not have a felony drug conviction at the end of the tax year

A student or taxpayer may claim the credit for a spouse or dependent children. Expenses for books, room, board, athletics, and insurance are not included. Courses can be online. For eligibility details, visit IRS.gov — American Opportunity Tax Credit.

The Lifetime Learning Credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate, and professional degree courses — including courses to acquire or improve job skills. There is no limit on the number of years you can claim the LLC. For details, visit IRS.gov — Lifetime Learning Credit.

Taxpayers who have loans to pay for the cost of attendance at an eligible educational institution may generally deduct interest they pay on student loans for themselves, their spouse, or their dependent(s). The maximum interest that may be deducted varies from one tax year to another. You may deduct the lesser of the actual amount of interest paid or the allowable maximum. This deduction is subject to modified adjusted gross income (MAGI) limits.

The University of Mount Olive offers a unique opportunity for our strategic partners called the Trojan Alliance Partnership (TAP). TAP allows employees of partnering organizations to receive a tuition scholarship.

• UMO will offer a 10% tuition scholarship to employees who enroll in seated or online classes.
• Application fees will be waived.