Yes, the education tax credits changed dramatically under the new tax laws.
If you are claiming for your children, you are most likely claiming the American Opportunity Tax Credit.
Who can claim:
• You pay qualified
education expenses of higher education.
• You pay the
education expenses for an eligible student.
• The eligible
student is either yourself, your spouse, or a dependent you claim on your tax
return.
Student qualifications:
1. As of the
beginning of 2018, the student had not completed the first 4 years of
postsecondary education (generally, the freshman through senior years of
college), as determined by the eligible educational institution. For this
purpose, don't include academic credit awarded solely because of the student's
performance on proficiency examinations.
2. Neither the
American opportunity credit nor the Hope scholarship credit has been claimed by
you or anyone else (see below) for this student for any 4 tax years before
2018. If the American opportunity credit (and Hope scholarship credit) has been
claimed for this student for any 3 or fewer tax years before 2018, this
requirement is met.
3. For at least one
academic period beginning (or treated as beginning) in 2018, the student both: a. Was enrolled in a program that leads to a degree, certificate, or
other recognized educational credential; and b. Carried at least one-half the normal full-time workload for his or her
course of study.
The standard for what is half of
the normal full-time workload is determined by each eligible educational
institution. However, the standard may not be lower than any of those
established by the U.S. Department of Education under the Higher Education Act
of 1965.
Income limits:
- To claim the full credit, your MAGI,? modified adjusted gross income must be $80,000 or less ($160,000 or less for married filing jointly).
- You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
- You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).
For more information, follow this link: AOTC
