Do you need to change your withholding?
Check with your human resources dept to change your W-4s
American Education Credit
- Maximum Credit $2,500.
- Can be claimed for 4 years.
- Up to 40% of credit can be refundable.
- Qualified tuition and related materials now include books.
- Phase out
- Single AGI 80,000 -90,000
- MFJ AGI 160,000 – 190,000
Computation
- 100% of first $2,000 of qualified expenses.
- 25% of next $2,000 of qualified expenses.