Tax Tip 2018-117: Tax credits help offset higher education costs
Internal Revenue Service (IRS) sent this bulletin at 07/31/2018 12:35 PM EDT
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Issue Number: Tax Tip 2018-117Tax credits help offset higher education costs Taxpayers who pay for higher education in 2018 can see tax savings when they file their tax returns. If taxpayers, their spouses or their dependents take post-high school coursework, they may be eligible for a tax benefit. There are two credits available to help taxpayers offset the costs of higher education. The American opportunity credit and the lifetime learning credit may reduce the amount of income tax owed. Taxpayers use Form 8863, Education Credits, to claim the credits. The American opportunity credit is:
The lifetime learning credit is:
To be eligible to claim the American opportunity credit, or the lifetime learning credit, the law requires a taxpayer or a dependent to have received a Form 1098-T from an eligible educational institution. Share this tip on social media -- #IRSTaxTip: Tax credits help offset higher education costs. https://go.usa.gov/xUyYw Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message. |