Income Tax Credits
The tax details presented are intended for basic information only and are not tax advice. Please consult your professional tax representative and/or reference the following IRS websites for complete text of various educational related IRS publications.
- IRS Publication 17: 35. Educational Credits
- IRS Publication 970: Tax Benefits for Higher Education
- IRS Form 8863: Education Credits (American Opportunity and Lifetime Learning Credits)
- IRS Form 8917: Tuition and Fees Deduction
- IRS Tax Topic 513: Education Expenses - Work—related
| Tax Credit | Qualified Education | *Other Conditions | Benefit | Annual Limit |
|---|---|---|---|---|
American Opportunity Credit (a modification of the Hope Credit) |
1st four years undergraduate (postsecondary) | Must be enrolled at least half-time in degree program | 40% of credit may be refundable (limit $1,000) | Up to $2,500 Credit per eligible student |
Lifetime Learning Credit |
Undergraduate and Graduate | No other enrollment conditions | Credits can reduce amount of tax you must pay | $2,000 Credit per tax return |
Student Loan Interest Deduction |
Undergraduate and Graduate | Must have been at least half-time student in degree program | Can deduct interest paid | $2,500 Deduction |
Important IRS Note: Generally you cannot claim more than one benefit for the same educational expense.
* Please note additional conditions and modified adjusted gross income guidelines apply for IRS educational tax credits and deductions.
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