New Tax Relief For Education
The Lifetime Learning Credit 2010 gives a tax credit of up to $2,000 dollars for types of higher learning. It differs from the American Opportunity Tax Credit because it can be claimed for part-time students and even for courses that don’t count towards a degree. This credit has been made available through 2011, 2012, and again this year. Eligible Expenses include Tuition but not room and board, Books, Equipment, and fees that may be required by the University. The Lifetime Earning Credit isn’t eligible with tuition paid fro by a scholarship, employer funds or a grant. Even if multiple students are eligible the Lifetime Learning Credit can only be claimed once a year per household. The tax credit reduces taxes by 20% for non qualified expenses for up to $10,000 dollars for a total of up to $2,000.
You may claim the credit if you, a dependent or your spouse attends an eligible university or educational institution. even if only one class is taken, the tax credit may be claimed. All accredited colleges and universities are eligible as well as vocational schools as long as their also eligible for the US Department of Education’s Federal Student Aid Programs. Single head of households and qualifying widows earning between $53,000 and $63,000 have been phased out for 2013. If you’re married and filing jointly, the phase amount is $107,000 to $127,000. This amount is up from 2012’s phase out range of $52,000 to $62,000 for qualifying widows and single, head of household and a range of $104,000 to $124,000 for Married couples filing jointly.