 In other words, the 1098T is a pretty good reference and it should hopefully be accurate for most people in terms of what you have paid, but we've talked about what qualifies as education expenses in prior presentations and the 1098T might not pick up or exactly pick up all the different qualification components. The reason the IRS wants to make sure that a 1098T is given isn't solely so you can tie into that number as is the case for other kind of documentation like a W-2 where if you don't tie into the number you will almost surely get an audit kind of situation. But the 1098T can still verify to the IRS that if you're claiming the credit, at least they can verify that you attended some kind of qualifying institution even if the number on the 1098T is not exactly what was used to calculate the credit. So in addition, form 1098T should give other information for that institution such as adjustments made for prior years, the amount of scholarship or grants. So that'll help you to see if you need to decrease the amount by the grants if that was free money. We talked about that in prior presentation, reimbursements, refunds and whether their student was enrolled at least half time, which is another requirement generally for the American Opportunity Credit which has different rules in that case than the lifetime learning credit or was a graduate student. So the eligible educational institution may ask for a completed form W9S, so you have to give them the information so that they can populate the form 1098T, the W9S like a W4 in essence when you're an employee is a request for that information or similar statement to attain the student's name, address and taxpayer identification number. Effect of the amount of your income on the amount of your credits, the amount of your lifetime learning credit is phased out gradually reduced if your MAGI modified to just a gross income is between 80,000 and 90,000. So these are the numbers that you kind of want to keep in mind if you're like giving advice or talking about these credits, you got to say, well, it's going to start phasing out 80 and 90,000, it's going to be 160,000 and 180,000 if you file a joint return. And obviously one way to kind of think about that is that you would think it would be doubled for a joint return, which in this case, it is, right? Because you'd have two people together so you think their income could possibly be doubled. So if it's 80,000, we're going to 160,000, 90,000, we're going to 180. So you can't claim a lifetime learning credit if your MAGI is 90,000 or more or 180,000 or more if you file a joint return. So modified adjusted gross income, what does that mean? That's going to be the phased out number that's used, not the gross income, but the AGI and then the modified AGI. So for most taxpayers, the MAGI, the modified adjusted gross income is adjusted gross in the same as AGI, in other words, as figured on their federal income tax return. MAGI when using form 1040 or 1040 SR, if you file form 1040 or 1040 SR, your MAGI is the AGI online 11 of that form, modified by adding back if any of these apply and tax software would help to calculate these oftentimes. One, foreign earned income exclusion. Two, foreign household exclusion. Three, foreign household deduction. Four, exclusion of income by bonafide residents of American Samoa. And five, exclusion of income by bonafide residents of Puerto Rico. Example, you are filing a joint return with an MAGI of 161,000 in 2022, you paid 6,600 of qualified education expenses. You have figured the tentative lifetime learning credit, which is 20% of the first 10,000 of qualified education expenses you paid for all eligible students. So the result is a 6,600 is what was paid, which is under the 10,000. Therefore, the credit before we get into any phaseouts, it's not at the 2,000, but rather at the 1,320 tentative credit. And then because your MAGI, your modified adjusted gross income is within the range of income where the credit must be reduced, you must multiply your tentative credit, 1,320 by a fraction, the numerator top part of the fraction is 180,000, the upper limit of those filing a joint return minus the modified AGI, the denominator bottom part is 20,000, is 20,000, the range of income for phaseout 160,000 to 180,000, the result is the amount of your phaseout. So we probably don't need to know this calculation cause software will help with this calculation and then you can kind of deconstruct from the software. What we need to know is to be able to say and talk to people intelligently about, well now if your income goes above a certain threshold, it's gonna phase out. So if you can't get the American opportunity credit, then you might take the lifetime learning credit. Although it takes more expenses to maximize out the credit, you would need $10,000 instead of $4,000 to get the maximum credit amount of 2,000 instead of 2,500 and there's an income phaseout which will basically start and then phase completely out, phases out fairly quickly after you hit that basically income threshold.