- American Opportunity Tax Credit. This
credit can be up to $2,500 per eligible student. The AOTC is available
for the first four years of post secondary education. Forty percent of
the credit is refundable. That means that you may be able to receive up
to $1,000 of the credit as a refund, even if you don’t owe any taxes.
Qualified expenses include tuition and fees, course related books,
supplies and equipment. A recent law extended the AOTC through the end
of Dec. 2017.
- Lifetime Learning Credit. With the LLC, you may be able to claim up to $2,000 for qualified education expenses on your federal tax return. There is no limit on the number of years you can claim this credit for an eligible student.
You can use the IRS’s Interactive Tax Assistant tool to help determine if you’re eligible for these credits. The tool is available at IRS.gov.
- Student loan interest deduction. Other than home mortgage interest, you generally can’t deduct the interest you pay. However, you may be able to deduct interest you pay on a qualified student loan. The deduction can reduce your taxable income by up to $2,500. You don’t need to itemize deductions to claim it.
For more information, visit the Tax Benefits for Education Information Center at IRS.gov. Also, check Publication 970, Tax Benefits for Education. The booklet’s also available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
- Tax Benefits for Education Information Center
- Am I Eligible to Claim an Education Credit? – Interactive Tax Assistant tool
- Publication 970, Tax Benefits for Education
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication
No comments:
Post a Comment