If an individuals income is above $80,000.00 there is absolutely no reason for that individual to receive this deduction. That is almost 4X the income of the average American. In 2010 the average income was not even above $27,000. If they raise the cap they would have to lower the deduction and refund amount offered, which would hurt the average American who depends on this amount to make ends meet with their low income.
This is a great credit for low-income individuals, and they should continue this credit until the economy starts to turn around. Sure it seems unfair to the individuals with an income over $80,000.00 but guess what! You can afford to send your children to class. I make less than $15,000 a year and I am supporting myself through college, and I can't afford it, but because of these credits I can. You want to talk about unfair? Unfair is listening to rich people whine because they don't have the same opportunity. Spend some of that $80,000.00 on your child's education if it means that much to you. ================================================== ANSWER:
Quite a few people have posted that the college tax credit income cap is unfair. In fairness, it should be pointed out that this credit was touted as "middle-class" tax relief, not "low-income" tax relief. The fact that it's attached to going to college (which Americans of all income levels aspire to) kind of obscures this.
Low income Americans do have other sources of financial aid for college (just as some would say that middle income families have their income as a source). For instance, your income would qualify you for federal Pell grants, and probably state college grants as well, if you filed a FAFSA.
Those with incomes over $80,000 seem to be saying that in order to have that kind of income, they have higher costs (which may not be simply a matter of choice) which should be considered by the federal government. Many feel that the income caps should take into account which state the taxpayer lives in, for instance.
The problem is (as you pointed out) if more people are able to qualify, it is likely that the tax credit will be reduced.
