The income qualifications for education credits (American OpportunityTax Credit or Lifetime Learning Credit) depends on your Modified Adjusted Gross Income (MAGI), not your Adjusted Gross income (AGI). Your MAGI may be too high, if you are claiming other education expense (see below) or have other income than what is in your AGI.
For the limits, see: What's the income limit for the American Opportunity and Lifetime Learning Credits?
To calculate your MAGI, take your AGI and add back certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable:
- Student loan interest
- One-half of self-employment tax
- Qualified tuition expenses
- Tuition and fees deduction
- Passive loss or passive income
- IRA contributions
- Non-taxable social security payments
- The exclusion for income from U.S. savings bonds
- Foreign earned income exclusion
- Foreign housing exclusion or deduction
- The exclusion under 137 for adoption expenses
- Rental losses
- Any overall loss from a publicly traded partnership
