If you've looked in the upper right corned of the ol' blog, you've seen that Today's Tax Tip deals with education tax credits.
In connection with that tip, I thought it would be helpful to put the high points of the American Opportunity and Lifetime Learning credits in a table format.
| American Opportunity | Lifetime Learning |
|
Up to $2,500 credit per student; 40 percent of credit may be refundable (limited to $1,000). Prior Hope Credit claims must be taken into account when figuring eligible expenses. |
Up to $2,000 credit per tax return. |
|
Covers course-related books, supplies and equipment for first four years of a student's undergraduate studies. |
Available for all years of postsecondary education, both undergraduate and graduate, as well as for courses to acquire or improve job skills. A degree or certification is not required. |
|
To claim, student must be enrolled at least half-time in a program that will lead to a degree, certificate or other recognized education credential at a an eligible institution. |
Available for one or more courses, with no long-term enrollment conditions. |
|
Credit is phased out for modified adjusted gross incomes between $80,000 and $90,000 for single filers, $160,000 and $180,000 for joint returns. |
Credit is phased out for modified adjusted gross incomes between $50,000 and $60,000 for single filers, $100,000 and $120,000 for joint returns. |
|
Is not available if student has a felony drug conviction on his or her record. |
Is available even if student has a felony drug conviction on his or her record. |
If you, or a child, is in college or you're continuing your own education, check out these tax credits that could help you pay some of the high costs of higher education. Your tax homework could pay off on your 1040, as well as on your college transcript.
Related posts:
- President wants American Opportunity tax credit made permanent
- Yes, Virginia, there is an election today
(American Opportunity credit section) - School's back, along with the bills
- Investing exodus: first 401(k)s, now 529s
- 529 facts
- Paying your kid's college costs
- Daily Tax Tips 2011: January, February and March lists
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AffordAnything.org
What a great chart … I love it when people make comparison-charts, which are visually more interesting, and easier to read, than blobs of text trying to compare the two types of tax credits. I really like that Lifetime Learning is available for people taking as few as 1 or 2 classes.