Education Credits-American Opportunity Credit & Lifetime Learning Credit 2018

2:48 American Opportunity Credit Reminders 10:38 American Opportunity Credit – Introduction 22:23 American Opportunity Credit – Table – Overview of Credit 34:16 American Opportunity Credit 50:56 Who Can’t Claim The Credit? 56:10 What Expenses Qualify? 1:01:43 American Opportunity Credit – Can You Claim the Credit? 1:09:02 American Opportunity Credit – Table – Can You Claim the Credit? 1:16:21 American Opportunity Credit – Qualified Education Expenses 1:25:50 American Opportunity Credit – No Double Benefit Allowed 1:29:43 American Opportunity Credit – Adjustments to Qualified Education Expenses 1:43:54 American Opportunity Credit Examples – Adjustments to Qualified Education Expenses 2:14:01 American Opportunity Credit – Expenses That Don’t Qualify 2:18:57 American Opportunity Credit – Who is an Eligible Student? 2:29:20 American Opportunity Credit – Who Can Claim a Dependent’s Expenses? 2:39:32 American Opportunity Credit – Figuring the Credit 2:54:23 American Opportunity Credit – Effect of the Amount of Your Income on the Amount of Your Credit 3:05:42 American Opportunity Credit – Refundable Part of Credit 3:15:44 Lifetime Learning Credit – Introduction 3:25:58 Lifetime Learning Credit –Can You Claim the Credit? 3:35:14 Lifetime Learning Credit – Who Can’t Claim the Credit? 3:38:46 Lifetime Learning Credit – What Expenses Qualify? 3:43:42 Lifetime Learning Credit – Qualified Education Expenses 3:51:05 Lifetime Learning Credit – No Double Benefit Allowed 3:55:57 Lifetime Learning Credit – Adjustments to Qualified Education Expenses 4:18:07 Lifetime Learning Credit – Coordination with Pell Grants and other scholarships 4:23:57 Lifetime Learning Credit – Examples – To Include or Exclude Scholarship in Income? 4:38:10 Lifetime Learning Credit – Expenses That Don’t Qualify 4:43:53 Lifetime Learning Credit – Who Can Claim a Dependent’s Expenses? 4:53:47 Lifetime Learning Credit – Figuring the Credit 5:06:54 Lifetime Learning Credit – Effect of the Amount of Your Income on the Amount of Your Credit

Publication 970 https://www.irs.gov/pub/irs-pdf/p970.pdf Form 8863 Instructions (American Opportunity & Lifetime Learning Credits) https://www.irs.gov/pub/irs-pdf/i8863… Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) https://www.irs.gov/pub/irs-pdf/f8863… For 2018, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American oppor-tunity credit (this chapter) and the lifetime learning credit (chapter 3). This chapter explains: • Who can claim the American opportunity credit, • What expenses qualify for the credit, • Who is an eligible student, • Who can claim a dependent’s expenses, • How to figure the credit, • How to claim the credit, and • When the credit must be repaid. What is the tax benefit of the American opportunity credit? For 2018, you may be able to claim a credit of up to $2,500 for adjusted qualified education expenses paid for each student who qualifies for the American opportu-nity credit. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Forty percent of the American opportunity credit may be refundable. This means that if the refunda-ble portion of your credit is more than your tax, the excess will be refunded to you. For 2018, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American oppor-tunity credit (this chapter) and the lifetime learning credit (chapter 3). This chapter explains: • Who can claim the American opportunity credit, • What expenses qualify for the credit, • Who is an eligible student, • Who can claim a dependent’s expenses, • How to figure the credit, • How to claim the credit, and • When the credit must be repaid. What is the tax benefit of the American opportunity credit? For 2018, you may be able to claim a credit of up to $2,500 for adjusted qualified education expenses paid for each student who qualifies for the American opportu-nity credit. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Forty percent of the American opportunity credit may be refundable. This means that if the refunda-ble portion of your credit is more than your tax, the excess will be refunded to you. tax return, you can’t use that same dependent’s qualified education expenses to figure the lifetime learning credit for 2018. If you pay qualified education expenses for more than one student in the same year, you can choose

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