" 2012 Education Credits Overview "

IRS allows three Education Credits - American Opportunity Credit, Lifetime Learning Credit, and Tuition & Feed Deduction.  Student should choose the credit that provides the maximum tax benefit. Only one credit can be claimed i.e. no double dipping. Any of the three credits are available to a student that is:
1.  Enrolled at least half year.
2. The Education Institution has to be accredited.
3. Typically student receives 1098-T from the University.
A)  American Opportunity Credit - If a taxpayer pays over $4000 per year in Qualified Expenses this $2500 credit is available for a four year post secondary education.  Tution & Books expenses qualify.
B) Tution and Fees Deduction-  Varies depending upon the Adjusted Gross Income(AGI). If AGI is less than 130K$ for Married filing Jointly, $4000 Credit is available.
C) Life Time Learning Credit:  Limited to 20% of the Education expenses with a maximum of $2000. Many educational requirements are reduced and many taxpayers generally qualify for it.

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