There are several federal tax benefits available to students.
While this doesn’t help pay for college up front, it may provide you with some financial assistance or relief down the road.
These education tax benefits include:
Lifetime Learning CreditYou may be able to claim a Lifetime Learning Credit of up to $2,000 annually for qualified tuition expenses.
American Opportunity CreditYou may be able to claim an American Opportunity Credit of up to $2,500 annually for qualified tuition expenses.
Tuition and Fees DeductionYou may be able to reduce your taxable income by up to $4,000 annually for tuition and related expenses.
Employer-paid Tuition AssistanceEmployer assistance for both undergraduate and graduate coursework may be tax-free up to $5,250 annually.
Student Loan Interest DeductionStudent loan borrowers may be able to deduct up to $2,500 annually in interest paid. We encourage you to take advantage of this tax benefit while you are in school and make interest-only payments on your unsubsidized student loan to avoid the impact of compounding interest to your debt.
For information on education tax benefits, please consult the IRS, Publication 970, or your tax preparer.