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<\/a><\/p>\nThe IRS offers some tips about education tax benefits that can help offset some college costs for students and parents. Typically, these benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.<\/p>\n
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- American Opportunity\u00a0Credit. <\/strong>This\u00a0credit, originally created under the American Recovery and Reinvestment\u00a0Act, is still available for 2012. The credit can be up to $2,500 per\u00a0eligible student and is available for the first four years of post secondary education at an eligible institution. Forty percent of this\u00a0credit is refundable, which means that you may be able to receive up to $1,000, even if you don’t owe any taxes. Qualified expenses include\u00a0tuition and fees, course related books, supplies and equipment.<\/li>\n
- Lifetime Learning\u00a0Credit.<\/strong>\u00a0In 2012, you may be able to claim a Lifetime Learning Credit of up to\u00a0$2,000 for qualified education expenses paid for a student enrolled in\u00a0eligible educational institutions. There is no limit on the number of\u00a0years you can claim the Lifetime Learning Credit for an eligible student.<\/li>\n<\/ul>\n
You can claim only one type of education credit per student in the same tax year. However, if you pay college expenses for more than one student in the same year, you can choose to take credits on a per-student, per-year basis. For example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for the other student.<\/p>\n
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- Student loan interest\u00a0deduction.<\/strong>\u00a0Generally, personal interest you pay, other than certain mortgage\u00a0interest, is not deductible. However, you may be able to deduct interest\u00a0paid on a qualified student loan during the year. It can reduce the amount\u00a0of your income subject to tax by up to $2,500, even if you don’t itemize\u00a0deductions.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Whether you’re a recent high school graduate going to college for the first time or a returning student, it will soon be time to head to campus, and payment deadlines for tuition and other fees are not far behind. The … Continue reading
- Lifetime Learning\u00a0Credit.<\/strong>\u00a0In 2012, you may be able to claim a Lifetime Learning Credit of up to\u00a0$2,000 for qualified education expenses paid for a student enrolled in\u00a0eligible educational institutions. There is no limit on the number of\u00a0years you can claim the Lifetime Learning Credit for an eligible student.<\/li>\n<\/ul>\n