Education Tax Credits, American Opportunity (Hope Credit extended) and the Lifetime Learning Credit

Answer

Education tax credits can help offset the costs of education. The American Opportunity (Hope Credit extended) and the Lifetime Learning Credit are education credits you can subtract in full from the federal income tax, not just deduct from taxable income. These incentives come in a couple of forms: tax credits, which directly reduce the amount of tax you are liable for, and tax deductions, which reduce the amount of income on which you pay taxes. More information can be found at www.saic.edu/1098t.

Helpful information can be found at the following websites:

Information

IRS—Education Credits

IRS—Tax Benefits for Education: Information Center

NASFAA—Tax Breaks for Higher Education

Tax Credit Eligibility Tool

IRS—Am I Eligible to Claim an Education Credit?