You May Qualify For Education Tax Credits

You may be eligible for these tax credits if you,
your spouse or your dependents take
post-high school coursework

With school back in session, parents and students should look into tax credits that can help with the cost of higher education. These credits may reduce the amount of tax you owe on your tax return. If the credit reduces tax to less than zero, you may get a refund.

If you pay for higher education in 2019, you can see these tax savings when you file your tax returns next year. If you, your spouse or your dependents take post-high school coursework, you may be eligible for a tax benefit.

There Are Two Credits Available To Help Taxpayers Offset The Costs Of Higher Education

The American Opportunity Tax Credit is:

Worth a maximum benefit up to $2,500 per eligible student.
Only for the first four years at an eligible college or vocational school.
For students pursuing a degree or other recognized education credential.
Partially refundable. This means if the credit brings the amount of tax owed to zero, 40 percent of any remaining amount of the credit, up to $1,000, is refundable.

The Lifetime Learning Credit is:

Worth a maximum benefit up to $2,000 per tax return, per year, no matter how many students qualify.
Available for all years of postsecondary education and for courses to acquire or improve job skills.
Available for an unlimited number of tax years.

Use Form 8863, Education Credits, To Claim The Credits

To compare the similarities and differences between the two credits, see the Education Credits Comparison on IRS.gov.

If you think you are eligible for one of these education credits, contact your tax professional to see which one is right for you.