What is the phaseout for the American Opportunity Credit?

In some cases, your adjusted gross income (AGI) may be too high to claim the American Opportunity Credit. The credit is limited when your AGI is above $80,000 ($160,000 if Married Filing Jointly) and completely phases out for AGIs of $90,000 ($180,000 if Married Filing Jointly) or higher. In that case it may be better to have your child claim themselves on their return since their income will usually be lower and will allow them to claim the American Opportunity Credit.