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Beginning 2012 American Opportunity Education Credit
and Deductions

Graduation Picture - www.TaxMan123.comCreated by Congress this new temporary credit to cover the years starting in 2012.

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

For taxable years beginning 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.

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 phaseout 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
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 yers starting in 2012, the earned income tax credit is not allowed if the aggfregate amount of certian investment income exceeds $3,200.00

For more detailed tax information go to