Tax Policy Center

Fiscal Facts

June 17, 2024
Many middle and upper-middle income taxpayers benefit from higher education credits. For low-income taxpayers who receive education credits, the refundable portion of the AOTC can provide a large boost of income.
Fact: 
While a substantial amount of education credit dollars go to middle and upper-middle income taxpayers, due largely to the refundable nature of the AOTC, the credit also provides benefits to low-income taxpayers.