GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
While deductions are also useful, claiming credits offers the benefit of cutting your tax liability directly.
The IRS lists several rules the qualifying child has to meet for you to get the nonrefundable credit.
This is in addition to the inflation adjustment described below.
You wont get anything with a modified AGI of $240,000 filing single or $480,000 filing jointly.
Limits for eligible expenses are $3,000 for one person and $6,000 for multiple people.
Each student can get a maximum of $2,500, with 40% of it refundable.
The student must have been in a qualifying program and not already received the credit for four years.
Modified AGI limits for the maximum amount are $80,000 for single filers and $160,000 for joint filers.
Checkthis IRS toolto check your eligibility.
Its a nonrefundable credit for the first $10,000 spent during the year.
The maximum credit is the lesser of 20% of your eligible expenses or $2,000.
you’re free to claim it each year you qualify.
Theres flexibility as long as the courses were taken at an eligible school for one academic period or more.
It can work for courses at any level and doesnt require enrollment in a degree program.
However, you must meet the income criteria to get even a partial LLC amount.
The modified AGI must be less than $90,000 for single filers or $180,000 for joint filers.
More From GOBankingRates
Share This Article:
