Educational Tax Credit

An education tax credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. There are two education credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit.

  • A tax credit reduces the amount of income tax you may have to pay
  • A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay

American Opportunity Tax Credit

American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student of the first four years of higher education. You can get a maximum annual credit of $2,500 for per eligible student. For more information on the American Opportunity Credit, please contact the Internal Revenue Service or your tax preparer.

Lifetime Learning Credit

The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses--including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return. For more information on the Lifetime Learning Credit, please contact the Internal Revenue Service or your tax preparer.

Form 1098-T, Tuition Statement

Eligible educational institutions file this form for each student they enroll and for whom a reportable transaction is made. Additional information about Form 1098-T may be found on the Bursar Office page.