 Income Tax 2022-2023 American Opportunity Credit Introduction. Let's do some wealth preservation with some tax preparation. Most of this information comes from Publication 970, Tax Benefits for Education Taxure 2022. You can find it on the IRS website, irs.gov, irs.gov. Looking at the income tax formula, we're down at the bottom where the credits are located. Remembering, the first half of the income tax formula is in essence an income statement, although a strange one ending at taxable income similar to net income, the bottom line of an income statement. Then we calculate the tax on the taxable income, not with one rate, not with a flat tax, but with a progressive tax system to get to the tax before credits and other taxes. Then we get to the credits and other taxes like self-employment tax and whatnot, and then we have the payments in the form of withholdings.