A credit of up to $2,000 is available for qualified education expenses paid during a year that the American Opportunity Credit or Education Deduction is not claimed for that particular student. The credit is 20% of qualified expenses up to $10,000 (for a total allowable credit of $2,000).
An eligible student can be you, your spouse, or an eligible dependent. The qualified expenses are for all undergraduate and graduate level education. The credit phases out for Married Filing Jointly taxpayers with adjusted gross income between $118,000 and $138,000. For Single, Head of Household, or Qualifying Widow(er) taxpayers, the adjusted gross income phase out is between $59,000 and $69,000.