An introduction to higher education tax credits and deductions listed in Publication 970 of the 2009 tax code that are also part of the 2010 tax code.

1. Tuition Tax Credits &
Deductions
An introduction to higher education tax credits and
deductions
Don’t go to College without us….

2. Tuition Tax Credits & Deductions
This presentation is meant as an introduction to
higher education tax credits and deductions
listed in Publication 970 of the 2009 tax code
that are also part of the 2010 tax code.
This presentation should not be used or
construed as tax advice.

3. College is Expensive…
Average published Cost of Attendance*(tuition, room and board)
charges:
• Public 4-Year In-State: $16,140
• Public 4-Year Out-of-State: $28,130
• Private Nonprofit 4-year: $36,993
*Source: 2010 College Board data

4. Did You Know about these 2010 Tax Year
Tax Deductions and Credits?
American Opportunity Credit
Lifetime Learning Credit
Tuition and Fees Deduction

5. American Opportunity Credit
The American Opportunity Tax Credit modifies the Hope Credit in
multiple ways, including:
• The maximum amount of the credit is increased to $2,500.00.
• 40% of credit may be refundable; the rest is nonrefundable
• The credit can now be claimed for the first 4 years of higher
education.
Notes on Availability:
The full credit is available to individuals whose modified adjusted gross
income is $80,000 or less, or $160,000 or less for married couples filing a
joint return. The credit is phased out for taxpayers with incomes above
these levels.
Those living in Midwest Disaster Areas may claim more under certain
conditions.
Read More Here.

6. Lifetime Learning Credit
What is the tax benefit of the lifetime learning credit?
For the tax year, you may be able to claim a lifetime learning credit of
up to $2,000 ($4,000 for students in Midwestern disaster areas) for
qualified education expenses paid for all eligible students.
Unlike the Hope Credit, there is no limit on the number of years the
lifetime learning credit can be claimed for each student.
Maximum credit Limit on modified Refundable or
adjusted gross nonrefundable
income (MAGI)
• Up to $2,000 • $120,000 if • Nonrefundable
($4,000 if a married filling — credit limited
student in a jointly to the amount of
Midwestern • $60,000 if single, tax you must pay
disaster area) head of on your taxable
credit per return household, or income
qualifying
widow(er)
Read More Here.

7. Tuition and Fees Deduction
What is the tax benefit of the tuition and fees deduction?
The tuition and fees deduction can reduce the amount of your
income subject to tax by up to $4,000.
Where is the deduction taken?
As an adjustment to income on Form 1040 or Form 1040A.
For whom must the expenses be paid?
A student enrolled in an eligible educational institution who is either:
•you,
•your spouse, or
•your dependent for whom you claim an exemption.
What tuition and fees are deductible?
Tuition and fees required for enrollment or attendance at an eligible
postsecondary educational institution, but not including personal,
living, or family expenses, such as room and board.
Read More Here.

8. You have questions, we have answers!
Join College Parents of America and get more tips and advice on:
How to get ready to fill out your FAFSA form;
How to make sense of your college student’s financial aid package;
How to protect your family’s college investment and much more…
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www.CollegeParents.org
888-761-6702