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What are Education Tax Credits and Deductions?

The IRS allows eligible students to claim one the following education credits or deductions on their tax return:

Tax credits include: The American Opportunity Tax Credit (AOC), which is a refundable credit, is for undergraduate students who are working towards a degree. The Lifetime Learning Credit, however, is non-refundable and either undergraduate or graduate students may be eligible. Both are a dollar-for-dollar reduction of the taxes you owe on your return but the AOC is fully refundable if you have zero tax due.

Tax deductions include: The Tuition and Fees Deduction is for students who paid tuition and other fees required to enroll at an eligible intuition. The other deduction, Student Loan Interest Deduction, is allowed for any interest paid on student loans. Both reduce your taxable income and help offset any taxes you might owe.

You’ve made the right choice by investing in your or your child’s future! Let ATC Tax Pros guide you through the steps of which credit or deduction is best for you.

Use our easy Edculator to find which credits and/or deductions you qualify to claim on your tax return…

Education Credit You Can Qualify For:

There are two types of education credits you can apply:

• American Opportunity Tax Credit (AOTC)
• Lifetime Learning Credit (LLC)

Here is a comparison chart to help you decide which one seems more suitable for you and your conditions.

Third Party entity that has paid the qualified educational expenses for either you or the student you claimed as a dependent. Payments by third parties include amounts paid by relatives or friends.