Education Tax Credits

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.

*Source: http://www.collegeboard.com/student/pay/ways-to-pay/446.html

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 

• The American Opportunity (formerly the Hope Credit)

• Lifetime Learning Credit