I Want to Know If I Qualify for Any Tax Benefits
You or your parents (if you are a dependent) may qualify for tax benefits to help offset the costs of paying for higher education. Below are examples of federal tax credits and deductions you may be able to claim, but visit the IRS’ Tax Benefits for Education: Information Center for guidelines on requirements and eligibility.
Federal Tax Credits
American Opportunity Credit – enables taxpayers to claim a credit of up to $2,500 based on qualified tuition and related expenses paid for each eligible student. (The full credit is available to individuals, whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return.)
Lifetime Learning Credit – enables taxpayers to claim up to $2,000 based on qualified tuition and related expenses paid for all eligible students enrolled in eligible educational institutions. There is no limit on the number of years the Lifetime Learning Credit can be claimed for each student.
Federal Tax Deductions
Tuition and Fees Deduction – You may be able to deduct up to $4,000 for qualified education expenses paid during the year for yourself, your spouse or dependent.
Student Loan Interest Deduction – You may be able to deduct interest paid on a student loan as long as your adjusted gross income is less than $75,000 ($150,000 if filing a joint return).
Business Deduction for Work-Related Education – If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education.