These include the American Opportunity Credit and Lifetime Learning Credit. The full value of education credits is available to single taxpayers with a modified AGI of $63,000 a year or less and to married couples filing jointly with an income of $127,000 a year or less. The American Opportunity Credit offers credit of up to $2,500 per eligible student, while the Lifetime Learning Credit offers credit of up to $2,000 per return.
There are a multitude of credit options for taxpayers, and the savings can run into the thousands each year. If you are unsure about your eligibility for tax credits, go to the IRS website or look for advice from an experienced accounting firm.