Educational Tax Credits

Educational Tax Credits

Did you know that the Internal Revenue Service (IRS) provides tax benefits for education?

The tax benefits can be used to get back some of the money you spend on tuition, loan interest or to maximize your college savings.

Read IRS Publication 970, Tax Benefits for Education  to see which federal income tax benefits might apply to your situation. 

Here are some highlights:  Tax Credits for Higher Education Expenses

Two tax credits help offset the costs (tuition, fees, books, supplies, equipment) of college or career school by reducing the amount of your income tax:

The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of school as the student works toward a degree.

The Lifetime Learning Credit allows you to claim up to $2,000 per student per year for any college or career school tuition and fees, as well as for books, supplies, and equipment that were required for the course and had to be purchased from the school.

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