Education Tax Benefits

There are several money-saving tax benefits available to taxpayers paying for higher education. Remember that a tax deduction reduces the amount of income subject to tax before the tax is determined. Tax credits reduce the amount of tax after the tax is calculated. 

You may be eligible for a student loan interest deduction, the American opportunity tax credit, or the lifetime learning credit. To determine whether you are eligible for any of the deductions and credits currently available, please consult with a qualified tax adviser or accountant or contact the IRS directly.

Other Tax Benefits Available 

There are additional ways that one may use higher education expenses toward tax credits or tax deductions such as IRA withdrawals, employer-provided educational assistance, and Coverdell Education Savings Accounts.

To learn more about the information listed above, please contact the IRS directly or review the IRS Publication 970 on Tax Benefits for Education. The IRS may be contacted by phone at 800.829.3676, or review Publication 970 (pdf).