Tax Credits for Education

Are you paying for higher-education for yourself or a dependent? Don't overlook the tax credits offered by the IRS.

There are two credits available to help taxpayers offset the costs of higher education:  The American Opportunity Tex Credit and the Lifetime Learning Credit. 

The American Opportunity Tax Credit is:
• Worth a maximum benefit up to $2,500 per eligible student.
• Only for the first four years at an eligible college or vocational school.
• For students pursuing a degree or other recognized education credential.

• Partially refundable. This means if the credit brings the amount of tax owed to zero, 40 percent of any remaining amount of the credit, up to $1,000, is refundable.

The Lifetime Learning Credit is:
• Worth a maximum benefit up to $2,000 per tax return, per year, no matter how many students qualify.
• Available for all years of postsecondary education and for courses to acquire or improve job skills.
• Available for an unlimited number of tax years.

Taxpayers use Form 8863, Education Credits, to claim the credits.

Contact

  • Address:DJL Accounting & Consulting Group, Inc.
    Cider Mill Professional Center, Building C-102
    1570 S Canfield Niles Road
    Youngstown, Ohio 44515 
  • Phone:330 779 0781