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Paying for college can be tough on your wallet, but there’s some good news: you may be eligible for tax breaks. The IRS has a helpful online interactive tool to help you find out if you qualify for various education-related credits and deductions.
The IRS states that this tool can help you determine your eligibility for educational credits or deductions such as the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition and Fees Deduction.
The Lifetime Learning Credit offers up to $2,000 per tax return. If you or a dependent have paid for higher education costs, you may qualify, based on income. There are limits and conditions, so refer to the IRS’s guide for more info. You might also be eligible for the American Opportunity Credit, which can give you up to $2,500 for qualified education expenses. However, there are other conditions to meet, and the IRS tool can help you navigate them. Here’s what you’ll need:
Filing status
Student’s enrollment status
Your modified gross income
Details of who paid the expenses, when they were paid, and which academic period they covered
Whether any expenses were paid using tax-exempt funds
Whether any expenses were paid with distributions from a Coverdell Education Savings Account or Qualified Tuition Program
Once you've gathered all the necessary information, visit the tool via the link provided below.
