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American Opportunity Credit |
Lifetime Learning Credit |
Maximum Credit |
Up to $2,500 credit per eligible student |
Up to $2,000 credit per return |
Limited on modified adjusted gross income (MAGI) |
$180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) |
$124,000 if married filing jointly; $62,000 if single head of household, or qualifying widow(er) |
Refundable or non-refundable |
40% of credit may be refundable; the rest is nonrefundable |
Nonrefundable-credit limited to the amount of tax you must pay on your taxable income |
Number of years of postsecondary education |
Available ONLY for 4 years of postsecondary education |
Available for all of postsecondary education and for courses to acquire or improve job skills |
Number of tax years credit available |
Available ONLY for 4 tax years per eligible student (including any year(s) Hope credit was claimed |
Available for an unlimited number of years |
Type of degree required |
Student must be pursuing a degree or other recognized education credential |
Student does not need to be pursuing a degree or other recognized education credential |
Number of courses |
Student must be enrolled at least half time for at least one academic period beginning during the year |
Available for one or more courses |
Felony drug conviction |
As of the end of 2012, the student had not been convicted of a felony for possessing or distributing a controlled substance |
Felony drug convictions are permitted |
Qualified expenses |
Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance |
Tuition and required enrollment fees (including amounts required to be paid to the institution for course-related books, supplies, and equipment) |
Payments for academic periods |
Payments made in 2012 for academic periods beginning in 2012 or beginning in the first 3 months of 2013 |
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