It
depends of several factors:
Click
on the link below to see the IRS set of questions will help you determine
if you can claim the American Opportunity Credit, the Lifetime Learning Credit,
or the Tuition and Fees Deduction.
https://apps.irs.gov/app/IPAR/investigate/IPAR_1/en-US/Attribute~EDCR_interview_complete~global~glob...
In the
meantime, here are some qualifications for claiming the American Opportunity Tax Credit:
- You paid qualified education
expenses for higher education (see the next section)
- You paid education expenses
for eligible students
- The eligible student is you, your spouse, or a dependent for whom you claim an
exemption
- Your modified adjusted gross
income is $90,000 ($180,000 if married filing jointly) or less (The credit
is reduced between $80,000 and $90,000 ($160,000 and $180,000)
- You must be taking courses at
an eligible education institution, which is any college, university, or
vocational school with a student aid program administered by the US
Department of Education.
And
you must be considered an eligible student:
- You are enrolled at least
half-time in a program leading to a degree,certificate, or other
recognized credential
- You had at least one academic
period beginning during the year
- You did not use the American
Opportunity Tax Credit in any four previous years
- You did not completed the
first four years of post-secondary education before the beginning of the
year
You are not eligible to claim the American
Opportunity Tax Credit if:
- Your filing
status is Married Filing Separately.
- Taxpayer is
listed as a dependent on another person’s return.
- You and your
spouse were non-resident aliens.
- You have a
felony drug conviction.
What expenses qualify for the American Opportunity Tax
Credit and which ones do not?
The
following expenses qualify for the American Opportunity Tax Credit:
- Expenses paid for yourself,
spouse, or dependent you claim as an exemption your return.
- Qualified education expenses
which are tuition and certain related expenses required for enrollment or
attendance at an eligible educational institution.
- Student-activity fees, but
only if the fees are paid to institutions as a condition of enrollment.
- Expenses paid for books,
supplies, and equipment needed for course of study included whether or not
purchased from the educational institution.
The
following expenses do not qualify
for the American Opportunity Tax Credit:
- Insurance
- Medical expenses(including
student health fees)
- Room and board
- Transportation or
- Similar personal, living, or
family expenses.
This
is the case even if these expenses are paid to the institution as a condition
of enrollment or attendance.
Who is eligible for the Lifetime Learning Credit?
You
are eligible to claim the Lifetime Learning Credit if all of the following
requirements are met:
- You (or your dependent or a
third party) paid qualified education expenses for higher education.
- You paid the education
expenses for an eligible student.
- The eligible student is you,
your spouse, or a dependent you claim an exemption for on your tax return.
- Your modified adjusted gross
income is less than $62,000($124,000 if you are married filing
jointly).
The credit is reduced between $52,000 and $62,000 ($104,000 and
$124,000).
One of
the advantages of the Lifetime Learning Credit is that you can take the
credit every year for higher
education as long as you meet the qualifying requirements.
What expenses qualify for the Lifetime Learning
Credit?
Generally,
if you paid for qualified education expenses for an academic period beginning
in the year or in the first three months of the next year then you are allowed
to take the Lifetime Learning Credit.
Qualified
expenses are tuition and certain related expenses required for enrollment at an
eligible institution. The course must be either part of a post secondary degree
program or taken by the student to acquire or improve job skills.
Student
activity fees and expenses for course-related books, supplies, and equipment
are included in qualified education expenses only if the fees and expenses are
paid to the institution as a condition of enrollment or attendance.
Note: the maximum Lifetime Learning Credit you
can claim in a year is 20% of the first $10,000 of qualified education expenses
you paid for all eligible students (or up to $2,000). The credit is reduced (phased out) if your modified
adjusted gross income (MAGI) is between $54,000 and $64,000 ($108,000 to
$128,000 if married filing jointly). Since this is not a refundable
credit, the credit can't be more than your tax liability.
