Education Tax Credits

For Tax Year 2012, following Education Credits are available. They have their Phaseout Ranges (MAGI) as well.

Education ProvisionsMaximum
American Opportunity (Modified Hope) Credit$2,500
Lifetime Learning Credit$2,000
Coverdell Education Saving Account Contribution$2,000
Student Loan Interest Deduction$2,500

2012 Education Provisions Phase out Ranges (Modified Adjusted Gross Income)
Education ProvisionFILING STATUS
Single, QW, or HOHMFJMFS
Student Loan Interest Deduction (Up to $2,500)$60,000 - $75,000$125,000 - $155,000Not Available
Education Savings Bond Interest Exclusion (100%)$72,850 - $87,850$109,250 - $139,250Not Available
American Opportunity (Modified Hope) Credit (Up to $2,500)$80,000 - $90,000$160,000 - $180,000Not Available
Life Time Learning Credit (Up to $2,000)$52,000 - $62,000$104,000 - $124,000Not Available
Coverdell ESA (Maximum $2,000)$95,000 - $110,000$190,000 - $220,000$95,000 - $110,000

Tuition and Fees Deduction:  Form 8917  

If you qualify, you can reduce your taxable income by up to $4,000 in 2012 (line 34 on 2012-1040). The amount of credit depends on the amount of your MAGI. If your MAGI is over $80,000 ($160,000 if FMJ), you cannot claim this credit.

Educator Expenses: 

If you were an eligible educator in 2012, you can deduct (line 23 on 2012-1040) up to $250 of qualified expenses you paid in 2012. If you and your spouse are filing jointly and both of you are eligible educators, the maximum deduction is up to $500. However, neither spouse can deduct more than $250 of his/her qualified expenses. You may be able to deduct expenses that are more than $250 (or $500) limits on Schedule A (1040) line 21.

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