Chapter 9: Tax Credits

01.Core Concepts

• American Opportunity and Lifetime Learning Tax Credits are phased out for MAGI of : • $160,000 - $180,000 for married filing jointly, and • $80,000 - $90,000 for others  MAGI = AGI + excluded foreign income + excluded income from U.S. possessions • Taxpayers cannot receive a double tax benefit for education expenses. • Cannot claim a credit for amounts otherwise excluded from income (e.g., scholarships and employer-paid education assistance)