What does the American opportunity credit target?

The American Opportunity Credit is designed specifically to assist students who are pursuing higher education, such as those attending college. This federal tax credit provides financial relief to eligible students by covering a portion of their qualified education expenses, which may include tuition, fees, and course materials for the first four years of post-secondary education.

The credit aims to make college more affordable and encourage individuals to pursue their education, thereby benefiting students directly rather than focusing on income levels, parental status, or age. Although there may be other financial aid programs aimed at different groups, this particular credit is uniquely targeted at students who are enrolled in an eligible educational institution and actively pursuing their studies.