For the latest information about developments related to Publication 970, such as legislation enacted after it was published, go to www.irs.gov/pub970.

Lifetime learning credit. For 2012, the amount of your lifetime learning credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $52,000 and $62,000 ($104,000 and $124,000 if you file a joint return). You cannot claim a credit if your MAGI is $62,000 or more ($124,000 or more if you file a joint return). This is an increase from the 2011 limits of $51,000 and $61,000 ($102,000 and $122,000 if filing a joint return). For more information, see chapter 3, Lifetime Learning Credit .

Student loan interest deduction. The amount of your student loan interest deduction for 2012 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). You cannot take a deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). This is an increase from the 2011 limits of $60,000 and $75,000 ($120,000 and $155,000 if filing a joint return). See chapter 4, Student Loan Interest Deduction , for more information.

Increased income thresholds for education savings bond program. For 2012, the amount of your interest exclusion will be gradually reduced (phased out) if your filing status is married filing jointly or qualifying widow(er) with a dependent child, and your modified adjusted gross income is between $109,250 and $139,250. You cannot take the deduction if your MAGI is $139,250 or more. For 2011, the limits that applied to you were $106,650 and $136,650.For all other filing statuses, your interest exclusion for 2012 is phased out if your MAGI is between $72,850 and $87,850. You cannot take the deduction if your MAGI is $87,850 or more. For 2011, the limits that applied to you were $71,100 and $86,100. For more information, see chapter 10, Education Savings Bond Program .

Business deduction for work-related education. For 2012, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2012 through December 31, 2012 is 55.5 cents per mile. See chapter 12, Business Deduction for Work-Related Education , for more information.

Form 1098-T, Tuition Statement. When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31, 2013. An institution my choose to report either payments received during calendar year 2012 (box 1), or amounts billed during the calendar year 2012 (box 2), for qualified education expenses. However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid. In addition, the Form 1098-T should give you other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements, or refunds, and whether the student was enrolled at least half-time or was a graduate student. The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number.

Hope Credit. For 2012, the Hope credit is not available. However, you may be able to claim an American opportunity or lifetime learning credit. See chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit , for more information.

Estimated tax payments. If you have taxable income from any of your education benefits and the payer does not withhold enough income tax, you may need to make estimated tax payments. For more information, see Publication 505, Tax Withholding and Estimated Tax.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. Most benefits apply only to higher education.