The education credits, including the American Opportunity Credit, were extended through 2012 for expenses
paid for tuition, certain fees and course materials for higher education. The maximum credit available is $2,500 in 2012 which includes 100% of qualifying tuition and related expenses not in excess of $2,000, plus 25% of those expenses that do not exceed $4,000. Additionally, the Lifetime Learning Credit sticks around for 2012, capped at $2,000, which applies to 20% of the first $10,000 of qualifying out-of-pocket expenses The above-the-line Tuition and fee deduction was also extended so that taxpayers who don’t itemize can continue to benefit. So don't overlook these credits as they can mean big savings on your return and they may be gone soon.
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Chris has been working in the industry for over a decade and has a passion for ensuring her clients have the best service in the area of taxation, accounting and bookkeeping.