TaxMan123.com

By Roger Chartier

United States of America IRS Tax Information

From back in 2012
American Opportunity Education Credit

Created by Congress this new temporary credit to cover the years starting back in 2012.

This is a new version of the Hope Credit for education.

For taxable years beginning in 2012 is an amount equal to 100% of the qualified tuition and related expenses.

This is not in excess of $2,000.00, plus 25% of those expenses in excess of $2,000.00 but not in excess of $4,000.00.

Accordingly the maximum Hope Scholarship Credit allowable is $2,500.

The IRS said

Recently the IRS has stated that university tuition paid by parents on behalf of their high school students who took college classes can qualify as well.

The threshold phaseout amounts and the completed phase-out amounts shown in the table below for married taxpayers filing a joint return include the increase as adjusted for inflation for tax years starting in 2012.

Number of Children
Item	One	Two	3 or more	None
Earned income amount	$9,320	$13,090	$13,090	$6,210
Maximum Amount of Credit	$3,169	$5,236	$5,891	$475
Threshold Phaseout Amount Single Surviving Spouse or Head of Household	$17,090	$17,090	$17,090	$7,770
Completed Phaseout Amount Single Surviving Spouse or Head of Household.	$36,920	$41,952	$45,060	$13,980
Threshold Phaseout Amount Married Filing Jointly.	$22,300	$22,300	$22,300	$12,980
Completed Phaeout amount Married Filing Jointly	$42,130	$47,162	$50,270	$19,190

Instructions for Form 1040 show the amount of earned income credit for each type of taxpayer.

For the Taxable years starting in 2012, the earned income tax credit is not allowed if the aggregate amount of certain investment income exceeds $3,200.00