What Is a Tax Credit?
To easily understand, the tax credits allows you to subtract, on a dollar-for-dollar basis, the amount of the credit from your total federal income tax bill. Income tax deductions are subtracted from your income before your taxes are calculated. As a result, tax credits usually allow for greater total savings than tax deductions.
The IRS offers tax credits to taxpayers who qualify to help pay expenses related to higher education. Please visit the IRS website or speak with a tax preparer to learn more about the programs.
Additional information can be found at:
- www.irs.gov – Publication 970, Tax Benefits for Higher Education