Tax credits

American Opportunity Tax Credit

This tax credit is available to parents of dependent students enrolled in their first four years of college pursuing an undergraduate degree or to students who are not claimed as dependents on their parents' federal tax return. The tax credit can be up to $2,500 per student. The maximum amount of eligibility is affected by the taxpayers' Modified Adjusted Gross Income. This tax credit offsets the cost of tuition, fees, course-related books, supplies, and equipment for higher education.

Who is eligible?

 

• Students must be enrolled at least half time.
• Married taxpayers filing jointly with a modified adjusted gross income of $180,000 or less.
• Single taxpayers with a modified adjusted gross income of $90,000 or less.
• Students must have no drug felonies.

Lifetime Learning Tax Credit

This credit is based upon tuition and fees for undergraduate, graduate, or continuing education course work. A family can claim a tax credit up to $2,000 each tax year. The maximum amount of eligibility is affected by the taxpayers' Modified Adjusted Gross Income.

Who is eligible?

• Married taxpayers filing jointly with a modified adjusted gross income of $120,000 or less.
• Single taxpayers with a modified adjusted gross income of $60,000 or less.

Questions?

If you have any additional questions about your eligibility for these education tax credits, you can call the IRS at (800) 829-1040 or consult your tax advisor. Colleges and universities are unable to provide students and families with tax advice.

For more information about tax credits visit:

• IRS Publication 970