American Opportunity Tax Credit
The full $2,500 credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. This credit can be used for each child in college, and is set to expire in 2017.
Get more information.
Lifetime Learning Tax Credit
For the tax year, you may be able to claim a Lifetime Learning credit of up to $2,000 for qualified education expenses paid for all students enrolled in eligible educational institutions. There is no limit on the number of years the lifetime learning credit can be claimed for each student. However, a taxpayer cannot claim both the American Opportunity credit and Lifetime Learning credit for the same student in one year.
Get more information.
Tuition and Fees Tax Deduction
This deduction can reduce the amount of your income subject to tax by up to $4,000. Reported on Form 8917, it is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). This deduction may be beneficial to you if, for example, you cannot take the lifetime learning credit because your income is too high. Questions? Visit www.irs.gov
Student Loan Interest Deduction
There is a special deduction allowed for paying interest on a student loan.
Learn more.
Information provided by the The LaGrange College Admissions & Financial Aid Team
The full $2,500 credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. This credit can be used for each child in college, and is set to expire in 2017.
Get more information.
Lifetime Learning Tax Credit
For the tax year, you may be able to claim a Lifetime Learning credit of up to $2,000 for qualified education expenses paid for all students enrolled in eligible educational institutions. There is no limit on the number of years the lifetime learning credit can be claimed for each student. However, a taxpayer cannot claim both the American Opportunity credit and Lifetime Learning credit for the same student in one year.
Get more information.
Tuition and Fees Tax Deduction
This deduction can reduce the amount of your income subject to tax by up to $4,000. Reported on Form 8917, it is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). This deduction may be beneficial to you if, for example, you cannot take the lifetime learning credit because your income is too high. Questions? Visit www.irs.gov
Student Loan Interest Deduction
There is a special deduction allowed for paying interest on a student loan.
Learn more.
Information provided by the The LaGrange College Admissions & Financial Aid Team