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Education Tax Credits
- and Other Tax Benefits for Education -
For more information, click on the program names below:
The American Opportunity Tax Credit is a federal tax credit for college tuition, fees, books, and supplies paid for yourself, your spouse, or a dependent. The credit equals 100% of the first $2000, and 25% of the next $2000 that you paid, up to a maximum of $2500 per year per student. The American Opportunity Tax Credit replaces the Hope Credit for tax years 2009 and 2010.
The Lifetime Learning Credit is a federal tax credit for qualified education expenses paid during the tax year for full or part-time post-secondary education, including undergraduate, graduate, and professional study. The credit equals 20% of the first $10,000 that you paid for all family members, up to a maximum of $2000 per year per family.
Income tax deductions reduce the amount of income that is taxable. They are not the same as tax credits, which reduce the amount of taxes you owe. Income tax deductions for education expenses include:
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