🎓Education credits aim to promote higher education attendance and graduation.
💰The American Opportunity Credit offers a maximum credit of $2,500 per eligible student.
📚Books and course materials qualify for the American Opportunity Credit, but not the Lifetime Learning Credit.
💻The Lifetime Learning Credit provides a credit of up to 20% of the first $10,000 in qualified expenses.
💡Certain limitations and phase-out thresholds apply to both education credits.
What is the purpose of education credits?
—Education credits are intended to encourage individuals to attend higher education institutions and graduate.
How much is the maximum credit for the American Opportunity Credit?
—The maximum credit for the American Opportunity Credit is $2,500 per eligible student.
Do books and course materials qualify for education credits?
—Books and course materials qualify for the American Opportunity Credit, but not for the Lifetime Learning Credit.
What is the maximum credit for the Lifetime Learning Credit?
—The Lifetime Learning Credit offers a credit of up to 20% of the first $10,000 in qualified expenses.
Are there any limitations or phase-out thresholds for education credits?
—Yes, both education credits have limitations and phase-out thresholds based on income.
00:00Education credits encourage higher education attendance and graduation.
01:18The American Opportunity Credit provides a maximum credit of $2,500 per eligible student for the first four years of post-secondary education.
03:33Books and course materials qualify for the American Opportunity Credit, but not for the Lifetime Learning Credit.
06:00The Lifetime Learning Credit offers a credit of up to 20% of the first $10,000 in qualified expenses.
09:58Both education credits have limitations and phase-out thresholds based on income.
