|
American Opportunity Credit
|
Lifetime Learning Credit | |
|---|---|---|
|
Qualified
Expenses
|
Tuition, fees and course materials required
for enrollment
or attendance at an eligible
educational institution
|
Tuition, fees and course materials required
for enrollment or attendance at an eligible
educational
institution, including courses to acquire or
improve job skills
|
|
Paid for
Eligible Student
|
Taxpayer, spouse or dependent claimed
on
taxpayer's return:
*Enrolled at least half time in a degree program
*In first 4 years of higher education
*No felony drug convictions
|
Taxpayer,
spouse or dependent claimed on
taxpayer's return:
* Enrolled in one or more courses at an eligible
educational institution
|
| Paid by |
Taxpayers
can claim credit for expenses they paid,
and for expenses paid by their dependent students,
including direct payments to the school
by
grandparents or other third parties that are treated
as paid by the student.
|
Taxpayers can claim credit for expenses they paid,
and
for expenses paid by their dependent students,
including direct payments to the school by
grandparents or other third parties that are
treated
as paid by the student
|
| Benefit |
100% of the first $2,000 of qualified expenses and
25% of the next $2,000.
40% refundable/60%
non-refundable
Maximum benefit: $2,500 per student. There is no
limit on the number of eligible students.
|
20% of qualified expenses
up to $10,000.
Non-refundable credit
Maximum benefit: $2,000 per taxpayer regardless of
the number of students
|
| Phaseout |
Modified
AGI between: $80,000 and $90,000
($160,000 and $180,000 MFJ)
Married Filing Separate does not qualify
|
Modified AGI between:
$50,000 and $60,000
($100,000 and $120,000 MFJ)
Married Filing Separate does not qualify
|