It is alleged that these tax returns included false education and American Opportunity credits
, as well as false statements regarding business income or deductions.
Common tax benefits with income-level phaseouts include contributions to Coverdell Education Savings Accounts, the deduction for interest on qualified education loans, the lifetime learning and American opportunity credits
, the child tax credit, and traditional and Roth IRAs.
Thus, they can claim two American Opportunity credits of $2,500 each, for a total of $5,000.
Therefore, the American Opportunity credit remains the primary tax credit available for higher education in 2011 and 2012.
A taxpayer cannot take an American Opportunity credit and a Lifetime Learning credit for the same child in the same year; however, it's possible to take an American Opportunity credit for one child and a Lifetime Learning credit for another child on the same tax return.
There is no limit in any given year as to the number of American Opportunity Credits
a taxpayer may claim as to his dependents (i.
Furthermore, if you have three kids who qualify you may be able to claim three American Opportunity Credits.
Moreover, the American Opportunity Credit is partially refundable, up to 40% of the amount for which you qualify.
The full American Opportunity Credit is available only to taxpayers with a modified adjusted gross income of less than $80,000, or $160,000 on a joint tax return.
Chet Edwards (D-Texas), highlighted components of the economic recovery package that can boost families' incomes, including expansions of the Earned Income Tax Credit, Child Tax Credit, and the Making Work Pay and American Opportunity credits
1) American Opportunity Credit offers a $2,500 income tax credit for the first four years of post-secondary education--page 315.
Also, unlike the American Opportunity Credit, the Lifetime Learning Credit can be taken for any year of post-secondary education (except a year in which the American Opportunity Credit is claimed for the same student), does not require at least half-time enrollment, and study may be intended to improve the student's job skills and need not lead to a degree.