Several education-related tax deductions and credits are available that can reduce your education costs. These benefits are available to part-time students, full-time students, and parents of dependent students.

  • Lifetime Learning Tax Credits offers a federal tax credit of up to $2,000 for each year you pay for college. Independent students, families claiming dependent students, and married students are eligible during any year in which the student attended college, even if it was just one or two classes.
  • American Opportunity Tax Credit offers a federal tax credit up to $2,500. Independent students, families claiming dependent students, and married students are eligible. The credit allows you to claim up to four years of postsecondary education. Qualifying education expenses include tuition and fees and the cost of required course materials, such as books and supplies.
  • The Student Loan Interest Deduction offers up to a $2,500 deduction of interest from federal taxable income. Independent students, families with one or more dependent students, and married students may be eligible for this deduction during any year in which they paid interest on a student loan.

 

See Tax Credits for Higher Education Expenses for more information