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It's that time of year again . . . back to school! This is a good time to learn about tax benefits that can help offset qualifying education costs. Here is information about two tax credits available to those who pay higher education costs for themselves, a spouse or a dependent.
The American Opportunity Tax Credit (AOTC)
The AOTC is worth a maximum benefit up to $2,500 per eligible student. It is only available for the first four years at an eligible educational or vocational school for students pursuing a degree or other recognized education credential. Eligible taxpayers can get up to $1,000 of the credit as a refund, even if they do not owe any tax.