Millions of Americans have suffered financially from the pandemic, but students may find reprieve from the IRS with college tax credits.
Millions of students attend college each year, which can be an expensive investment.
What credits and help does the IRS offer for college students in the U.S.?
The cost of college can be overwhelming for the student and the parent paying for it.
There are credits families can claim to help offset the costs.
There are four major credits the IRS offers related to education
- Lifetime Learning Credit
- American Opportunity Tax Credit
- Student loan interest deduction
- Educator expense deduction
The Lifetime Learning Credit is worth up to $2,000. It’s given for qualified college expenses.
American Opportunity Tax Credit is worth up to $2,500 and goes toward qualified college expenses.
With student loan interest reduction, up to $2,500 can be deducted for loans that former students or parents are required to pay.
Educator expense deductions worth up to $250 can be made as a reimbursement for teachers who spend their own money on their classroom.
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