Higher education can be as pricey as it is worthwhile. Luckily, the government offers several tax credits related to educational expenses. Take advantage of these credits to reduce your tax liability dollar for dollar:
- American Opportunity Credit: Available for four years of college, with a maximum credit of $2,500 per student. Students must be aged 18-24, attending full time, and not self-supporting.
- Lifetime Learning Credit: Covers up to 20% of the first $10,000 of qualifying educational expenses for undergraduate, graduate, or certificate level courses. Students must attend at least part time. (For students gaining or improving job skills, there is no time requirement.)
If September has your budget feeling tight due to paying tuition and fees, you can look forward to April when you file your annual tax return. By applying the appropriate educational tax credits to your account, you may be able to recoup some of what you’ve put into education—or at least minimize what you owe to the IRS for the year in question.
For more on educational tax credits, contact Taxation Solutions, Inc. We’re the Arlington area’s best choice for knowledgeable and skilled tax help, with plenty of experience helping taxpayers just like you navigate complex tax codes. We’ll give you the advice you need!