Credits

A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify.
The phase out for married taxpayers is Adjusted Gross Income between $160,000- $180,000.
The phase out is between $80,000 and $90,000 for single, head of household or qualifying widower(s) filing status taxpayers.
Married filing separately status are not allowed a American Opportunity credit.

For tax year 2016, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families Maximum Credit Amounts The maximum amount of credit for Tax Year 2016 is: $6,269 with three or more qualifying children
$5,572 with two qualifying children,
$3,373 with one qualifying child
$506 with no qualifying children

Qualified tuition and related expenses paid with student loans are considered in the same manner as cash payments when calculation the American Opportunity and Lifetime Learning credits.

A tax credit reduces the amount of tax for which you are liable. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces your tax liability, dollar for dollar.
A tax credit is usually more valuable than a tax deduction of the same dollar amount. There are two categories of tax credits, refundable and nonrefundable.
A nonrefundable credit can reduce your tax liability to zero (0), but not below.
A refundable tax credit is a tax credit that can reduce your tax liability below zero and the amount in excess of the liability is refunded to you.

Nonrefundable tax credits include:
Child and Dependent Care Credit
Education credits (American Opportunity Credit is also partially refundable)
Residential Energy Credits
Credit for the Elderly or Disabled
Child Tax Credit
Foreign Income Tax Credit
Retirement Savings Contribution Credit

A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify.
The credit begins to phase out for single taxpayers who have adjusted gross income between $80,000 and $90,000 and for joint tax filers when adjusted gross income is between $160,000 and $180,000. The credit is unavailable to taxpayers whose adjusted gross income exceeds the $90,000 and $180,000 thresholds.

This credit is for certain individuals who get less than the full amount of the child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.

If you pay someone to watch your child(ren)under age 13 to enable you (and your spouse if you are filing a joint tax return)to work, then you will be able to claim a Child Care Credit for the costs you pay subject to certain limitations on Form 2441.
You will have to supply to the IRS on Form 2441 the care provider's name, address and social security or EIN number.

In 2013, A taxpayer is allowed a 10-percent nonbusiness energy property credit for the purchase of qualified energy efficiency improvements to existing homes
There is a limitation of $500 on the total amount of nonbusiness energy property credit that may be claimed. This limitation is a lifetime limitation, not an annual limitation.
This credit was to expire with respect to any property placed in service after December 31, 2011. ATRA, Sec. 401, extends the availability of the credit to property placed in service before January 1, 2014.
In 2013 are 30% tax credits on large energy installation projects that are geared towards environmental aware taxpayers. They include geothermal heat pumps (no upper limit, both principal residences & second homes apply). Solar energy systems (no upper limit, both principal residences & second homes apply). Small wind turbines (no upper limit, both principal residences & second homes apply). Fuel cells (up to $500 per .5 kW of power capacity and for Principal residences only).