Education

You can claim the education credit for qualified education expenses paid by cash, check, credit or debit card or paid with money from a loan.

You must be considered an eligible student:

• You're 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 for more than three previous years.
• You didn't complete the first four years of post-secondary education before the beginning of the year.

Here are other common reasons you might not qualify:

• You're filing your return as Married Filing Separately.
• Your adjusted gross income (AGI) is too high.
  • American Opportunity Tax Credit AGI limit is $90,000 ($180,000 for joint returns).
  • Lifetime Learning Credit AGI limit is $65,000 ($130,000 for joint returns).
• Your expenses were paid with tax-free scholarships, fellowships, grants, education savings account funds, tax-free savings bond interest, or employer-provided education assistance.
• Someone else, such as your parents, list you as a dependent on their tax return.