Education Tax Credits and Deductions

Education Tax Credits and Deductions

American Opportunity Tax Credit (AOTC)

• Up to $2,500 per eligible student per year
• For the first 4 years of higher education
• 40% refundable (up to $1,000 even with no tax liability)
• Income limits: Phase-out $80,000–$90,000 single; $160,000–$180,000 MFJ

Lifetime Learning Credit (LLC)

• Up to $2,000 per tax return (not per student)
• No limit on years of study
• Not refundable
• Income limits: Phase-out $80,000–$90,000 single; $160,000–$180,000 MFJ
• Can be used for graduate courses and job-skill courses

Student Loan Interest Deduction

• Deduct up to $2,500 in student loan interest
• Available even if you take the standard deduction
• Phase-out: $75,000–$90,000 single; $155,000–$185,000 MFJ

529 Plan Benefits

• Contributions grow tax-free
• Withdrawals tax-free for qualified education expenses
• Some states offer state tax deductions for contributions

Coverdell Education Savings Account

• Contribute up to $2,000/year per child
• Tax-free growth and withdrawals for K-12 and college

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Paying for college? Let us find every education tax benefit available to you.