The 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. The full credit is available to individuals whose modified adjusted gross income is less than an amount specified annually by the IRS. The credit is phased out for taxpayers with incomes above these levels.

For more information, visit Lifetime Learning Credit on the IRS website.

The American Opportunity Tax Credit

Under, the American opportunity tax credit, qualified taxpayers may claim up to $2,500 for adjusted qualified education expenses. The full credit is available to individuals whose modified adjusted gross income is less than an amount specified annually by the IRS. The credit is phased out for taxpayers with incomes above these levels.

For more information, visit American Opportunity Tax Credit on the IRS website.

Student Loan Interest Deduction

If your modified adjusted gross income (MAGI) is less than an IRS-specified amount, there is a special deduction allowed for paying interest on a student loan used for higher education. Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments. The deduction can reduce the amount of your income subject to tax by up to $2,500.

For more information, visit Tax benefits for education on the IRS website.

Qualified Student Loan

Per the IRS, a qualified student loan is a loan you took out solely to pay qualified higher education expenses that were:

• For you, your spouse, or a person who was your dependent when you took out the loan;
• For education provided during an academic period for an eligible student; and
• Paid or incurred within a reasonable period of time before or after you took out the loan.

Qualified Education Expenses

Per the IRS, qualified education expenses are tuition, fees and other related expenses paid for an eligible student to enroll or attend an eligible educational institution. Eligible expenses also include the payment of student activity fees required to enroll or attend the school. For example, fees that all students must pay to fund on-campus student organizations and activities are considered qualified education expenses.

Even if you pay the following expenses to enroll or attend the school, the following are not qualified education expenses:

• Room and board
• Insurance
• Medical expenses (including student health fees)
• Transportation
• Similar personal, living or family expenses

The information provided on this website is for informational purposes only and should not be considered tax advice. For additional information on tax benefits for education (tax credits and tax deductions), please visit the IRS website or consult a tax professional.