Now Is a Good Time to See If You Qualify for College Tax Credits
The academic year is in full swing, and many graduates have gone to college. This is a good time to find out if you are eligible for two general education tax credits : the US tax credit or the lifetime tuition discount .
These tax credits are available to taxpayers with the associated costs for an eligible student — for example, self, spouse, or dependent. The IRS explains:
American Opportunity Tax Credit provides credit for every eligible student, and Lifetime Learning Credit provides maximum credit for every tax return. While a taxpayer is often eligible for both of these loans, he or she may only require one of them for a specific student in a specific year. To claim these credits on their tax return, the taxpayer must complete Form 1040 or 1040A and Form 8863 Education Loans.
Of course, you must meet the requirements, and the loan amount depends on your income. As the IRS explains, students usually receive a Form 1098-T from their school, which states how much tuition was paid or billed for the tax year. “However, the amounts shown on this form may differ from the amounts that taxpayers are entitled to claim in order to receive these tax credits,” the IRS said.
To see if you are eligible, you can visit the education loans webpage, and the IRS also has an online tax assistant tool that will tell you if you are eligible. For more details please follow the link below.
Reminder for Parents and Students: Check Out College Tax Credits for 2016 and Ahead | IRS.gov
Photo by John Keane .