Education Credits
Tax credits for college expenses: the American Opportunity Credit (up to $2,500) and Lifetime Learning Credit (up to $2,000).
Full explanation
Two federal education credits help offset higher education costs. The American Opportunity Tax Credit (AOTC) provides up to $2,500 per student for the first four years of college. It's 40% refundable (up to $1,000 back even with $0 tax). Phases out at MAGI $80K-$90K single, $160K-$180K MFJ. The Lifetime Learning Credit (LLC) provides up to $2,000 per tax return (not per student) for any post-secondary education, including graduate school and professional development. Nonrefundable. Phases out at MAGI $80K-$90K single, $160K-$180K MFJ. You cannot claim both credits for the same student in the same year. Qualified expenses: tuition and required fees (not room and board for LLC).
Source: IRS Publication 970 — Tax Benefits for Education
Ask the AI about this
“How does education creditsaffect my taxes?”Tax education only. Source: IRS Publication 970 — Tax Benefits for Education.