Education Incentives

The Act extends the following tax credits and deductions related to education expenses for two years through December 31, 2012, subject to the same income limitations and phase-out guidelines as before:

• The American Opportunity Tax Credit (AOTC)
• The exclusion of employer-provided education assistance (up to $5,250) from income and employment taxes
• The 60-month rule for the $2,500 above-the-line deduction for student loan interest deduction
• The $2,000 maximum contribution amount for Coverdell Education Savings and the eligibility of primary and secondary school expenses as qualified expenses