Did you know that you could reduce your higher education costs by claiming educational credits on your tax returns? The IRS currently offers two educational tax credits: the American Opportunity and the Lifetime Learning credits. These education tax credits will help reduce the overall cost of taxes that you owe dollar for dollar. Take advantage of them if you’re currently paying higher education costs for yourself or a dependent!
American Opportunity Credit
This tax credit allows you to save up to $2500 for each eligible student for expenses such as tuition, books, and school-related equipment. To be eligible for this credit, the student has to be pursuing a degree, must be eligible for federal student aid, enrolled at least half-time, and have no felony drug convictions. The credit can only be claimed for a maximum of four years.
Lifetime Learning Credit
This tax credit is available to students who attended at least one course at an institution that is eligible to participate in the federal student aid program. Students do not have to be enrolled in a degree or certificate program to earn the credit, and it will cover the costs of tuition and fees, books, and other supplies up to $2000.
Learn more about educational tax credits today by calling on the tax help pros at Taxation Solutions, Inc.!