1. Education Credits 1

2. What is a Tax Credit Credits are designed to offset tax liability Refundable credits Nonrefundable credits American Opportunity is refundable up to $1,000 Lifetime Learning Credit is nonrefundable 2

3. American Opportunity Credit Eligible expenses: o Tuition and fees required to enroll o Books, supplies, and equipment required by school or courses Expenses that are not eligible: o Room and Board o Travel o Parking o Expenses that are not required to enroll/attend o Tuition and fees covered by a grant or scholarship $2,500 limit, $1,000 max refundable amount per student 3

4. American Opportunity Credit For undergrads, 2 year programs, or other recognized educational credential o Must be pursuing a degree Only available for 4 years Student must be enrolled at least half time Student cannot have a felony drug conviction Cannot claim credit, if a dependent MFS cannot claim education credits Must be a US citizen or resident 4

5. Lifetime Learning Credit Eligible expenses: o Tuition and fees required to enroll o Books, supplies, and equipment required by school and purchased from the educational institution Expenses that are not eligible: o Room and Board o Travel o Parking o Expenses that are not required to enroll/attend o Expenses that are reimbursed by your job, scholarships, or grants $2,000 limit per tax return 5

6. Lifetime Learning Credit Available for all years of post secondary education Taking classes or courses to improve job skills o Student does not need to be pursuing a degree Cannot claim if MFS filing status Cannot claim if you are a dependent 6

7. TaxWise Form 8863 7

8. Enter qualified expenses under the correct credit and it will transfer to the 1040 8