Tax and Money Tip of the Week
Education Tax Credits, Part II
November 9, 2011 | No. 67
The Lifetime Learning Credit
With the current weak economic conditions, many people are considering additional education to refresh skills or acquire new ones. This week we have more to discuss on tax breaks that may be available to you if you are going back to school or sending a child off to college.
Here is a brief overview of the Lifetime Learning Credit and how it can be a real benefit to help ease the burden of higher education costs.
- Maximum credit of $2,000 per return
- No portion is refundable – credit is limited to the amount of tax you must pay on your taxable income
- Credit is limited to couples with modified adjusted gross income (MAGI) and phases out completely at $122,000 if married filing jointly, $61,000 if filing single, head of household or qualified widow(er)
- Available for all years of postsecondary education and for courses to acquire or improve job skills
- Available for an unlimited number of years
- Student does not need to be pursuing a degree or other recognized education credential
- Qualified expenses are tuition and fees required for enrollment, including amounts paid to the institution for course related books, supplies and equipment
- Payments include those made in 2011 for academic periods beginning in 2011 and in the first three months of 2012
Call us if we can help you determine if you qualify. More on Education Credits next week.
Questions or Comments?
Mark Vitek, CPA/PFS, CFP®
…until next week.