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.
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.
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.
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.