Heading back to school, here areÂ some credits you may have available
If you're paying for college this year then you may receive some savings on your next tax return. Here are a few credits and things you should know about in order to take advantage of them:
- American Opportunity Tax Credit â€’ Worth up to $2,500 per year! Available for the first four years of higher education and 40% of it is refundable. Â That's a $1000 refund even if you don't owe any taxes.
- Lifetime Learning Credit â€’ Worth up to $2,000 and no limit on the number of years that you can claim it for an eligible student.
- Qualified expenses â€’ You may use paidÂ qualified expensesÂ to figure out your tax credit. Â These expenses include things like tuition costs and/or enrollment fees for attending an eligible educational institution.
- Form 1098-T â€’ In most cases, you'll receive Form 1098-T, from your school by February 1. Â This form reports your qualified expenses and the amounts shown on the form may be either: Â the amount you paid for qualified tuition and related expenses, or the amount that your school billed you for qualified tuition and related expenses.
- Income limits â€’ Please note that these education credits are subject to income limitations... meaning they may be reduced, or eliminated, based on your income.