Do You Qualify for an Education Tax Credit?


Are you pursuing higher education, job training, or graduate studies? If so, you might be eligible for valuable tax credits to help offset the costs.

The IRS offers two main education tax credits: The American Opportunity Tax Credit and the Lifetime Learning Credit. These credits can also apply to your spouse or dependents' educational expenses.

But how do you know if you qualify for these tax credits?

The IRS has made it easier than ever with their Interactive Tax Assistant feature available on their website. In just 10 minutes, you can complete a simple quiz titled "Am I eligible to claim an education credit?" to determine your eligibility. For this you’ll need the following information:

  • Filing status
  • Student's enrollment status
  • Your adjusted gross income
  • Who paid the expenses
  • When the expenses were paid and for what academic period
  • If any expenses were paid with tax-exempt funds
  • If any expenses were paid with distributions from a Coverdell Education Savings Account or Qualified Tuition Program.

To qualify for either of these credits, you, your spouse, or your dependent must have received a 1098-T form from an eligible educational institution. However, there are exceptions to this requirement for certain students. Once you've confirmed your eligibility, you can claim the tax credits by completing Form 8863 and filing it along with your tax return.

The American Opportunity Tax Credit is especially beneficial for undergraduate students, covering up to $2,500 per eligible student for qualified education expenses. On the other hand, the Lifetime Learning Credit offers up to $2,000 per tax return for eligible students pursuing higher education or job training, regardless of their degree level.

These education tax credits can make a significant difference in your finances, helping to ease the burden of educational expenses. Whether you're a full-time student, part-time learner, or even a working professional seeking to enhance your skills, exploring your eligibility for these credits is a worthwhile endeavor.

So, if you're considering furthering your education or are already enrolled in a qualifying program, take advantage of the IRS' Interactive Tax Assistant to determine if you qualify for valuable education tax credits. With a clearer understanding of your eligibility, you can make informed decisions about managing your educational expenses and maximizing your education and tax benefits.




DJL Accounting & Consulting Group, Inc.
1570 South Canfield-Niles Road #C102
Youngstown, Ohio 44515 

Phone:  330 779 0781



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