Tax Credits Available for College Expenses

When filing your Federal Income Tax, be aware of tax credits available for students and parents paying college expenses. Warning: you can only use one per student per year so choose one from this list that works bests for you.

American Opportunity Credit

Amount: up to $2,500

Qualification: first 4 years of post-secondary education

Expenses for tuition, fees, course books, supplies and equipment

Income Limit: AGI* below $80,000 ($160,000 MFJ**)

When: 2011 and 2012

Lifetime Learning Credit

Amount: up to $2,000

Qualification: enrollment in eligible educational institution

Income Limit: AGI below $60,000 ($120,000 MFJ)

When: 2011

Tuition and Fees Deduction

Amount: up to $4,000

Qualification: cost of tuition and fees

Income Limit: AGI below $80,000 ($160,000 MFJ)

When: 2011

Student loan interest deduction

Amount: up to $2,500

Qualification: Paid interest on student loan for higher education this year

Income Limit: AGI below $75,000 ($150,000 MFJ)

When: 2011

*AGI = Adjusted Gross Income

**MFJ = Married Filing Jointly

For full details visit http://www.irs.gov/newsroom/article/0,,id=226993,00.html

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