Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

What's New This Year

Taxes and Credits

Education Benefits

American opportunity credit for 2016 is gradually reduced (phased out) if taxpayers' MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if Married Filing Jointly). Taxpayers cannot claim a credit if their MAGI is $90,000 or more ($180,000 or more if Married Filing Jointly).

Lifetime learning credit for 2016 is gradually reduced (phased out) if taxpayers' MAGI is between $55,000 and $65,000 ($111,000 and $131,000 if Married Filing Jointly). Taxpayers cannot claim a credit if their MAGI is $65,000 or more ($131,000 or more if Married Filing Jointly).

Student loan interest deduction begins to phase out for taxpayers with MAGI in excess of $65,000 ($130,000 for joint returns) and is completely phased out for taxpayers with MAGI of $80,000 or more ($160,000 or more for joint returns). There is no change from 2015.