An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit and the lifetime learning credit.
Tuition and Fees Deduction - You may be able to deduct qualified higher education expenses paid during the year for yourself, your spouse or your dependent. This deduction can reduce the amount of income subject to tax by up to $4,000, and can be claimed even if you do not itemize deductions. Note: certain restrictions apply. More information
Student Loan Interest Deduction
- If your modified adjusted gross income is less than $80,000, or $160,000 if filing jointly, you are allowed to deduct interest paid on a student loan used for higher education. This deduction can reduce the amount of your income subject to tax by up to $2,500. You can claim this deduction even if you do not itemize deductions. More information