If you are a student, or one of your dependents is a student, you may want to consider claiming one of the two tax break credit options available the next time you file your taxes. These credits allow you to save even more money than a standard tuition deduction because they reduce your tax bill per dollar. If you have the ability to claim both of the credits, you should pick the one that will provide the most savings.
Lifetime Learning Credit
You can claim the Lifetime Learning Credit if you took at least one educational course at an institution that participates in this federal program. You do not have to pursue a certification or degree to qualify for this credit, and you can claim it at any point during your studies. This credit also covers the cost of tuition and fees as well as any amount you spent on supplies or books the school required you to purchase.
American Opportunity Credit
When you claim the American Opportunity Credit, you can save up to $2,500 on your taxes for educational expenses you incurred for yourself and for each one of your dependents. However, you must have pursued or be in the process of pursuing a degree at an institution that participates in the educational tax expense program.
Note that you can only claim this credit for the first four years of school attendance. You must also be enrolled at least part-time for an entire academic period during the prior year to take advantage of this tax break.
Seek the Tax Help You Need
Knowing where to turn for reliable, correct tax advice can be a challenge. If you want to know more about available tax credits available to you as a student, or you have questions about taxes in general, GovDocFiling is an excellent resource. Reach out to them today for further information!