Education Tax Help
As a community college student, you are eligible to receive education tax credits that can reduce the expense of your education. There are two education tax credits available, the American Opportunity Credit and the Lifetime Learning Credit. The credits are based on educational expenses paid for your, your spouse, or your dependents.
As a student, you may qualify for tax credits or tax deductions. The IRS provides the Tax Benefits for Education: Information Center for complete details.
If you are at least a Half-Time Student you will receive the 1098-T form, which is mailed out on or before January 31st of each year. This form contains information such as tuition amount billed, financial aid/scholarships received, etc.
The American Opportunity Tax Credit
Under the American Recovery and Reinvestment Act (ARRA), more parents and students will qualify for the American Opportunity Tax Credit to help pay for college expenses. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. For complete information, Visit IRS, American Opportunity Tax Credit.
The Lifetime Learning Credit
The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses–including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return. For complete information visit, IRS Lifetime Learning Credit.
Tuition and Fees Deductions
You may be able to deduct qualified education expenses paid during the year for yourself, your spouse or
your dependent.
Student Loan Interest Deduction
There is a special deduction allowed for paying interest on a student loan (also known as an
education loan) used for higher education. Student loan interest is interest you paid during the year on a
qualified student loan.