There are two tax credits available to taxpayers to offset the financial burden of higher education. The American Opportunity Tax Credit and the Lifetime Learning Credit may reduce the amount of income tax owed. To be eligible for these credits, a taxpayer or a dependent must have received a 1098-T from an eligible educational institution. The American Opportunity Tax Credit is worth a maximum benefit up to $2,500 per eligible student for the first four years at an eligible college or vocational school. The Lifetime Learning Credit is worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify, and is available for all years of post-secondary education or for courses that help the taxpayer acquire or improve job skills.
If you need tax preparation assistance and would like to speak to an attorney, call our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.