Pursuing a Degree in Higher Education or Learning a Specialized Skill?

Here is some basic info to see if you may qualify for either of these education credits.

 American Opportunity Tax Credit

·        Must be first 4 years of post-secondary education

·        Maximum credit is $2,500.00

·        40% refundable ($1,000 beyond tax liability)

·        Must receive a 1098-T. If not, be prepared to provide proof of payment if necessary.

·        Must be at least a half-time student

·        Cannot claim the credit for more than 4 years

·        Must be pursuing a degree

·        Qualified Expenses - tuition, required enrollment fees, required course materials needed for course of study

 Lifetime Learning Credit

·        Maximum credit is $2,000

·        Must receive a 1098-T. If not, be prepared to provide proof of payment if necessary.

·        Duration of course can be within a semester, trimester, or a quarter (half-time is not required)

·        Must be post-secondary education or courses to acquire or improve job skills

·        Qualified Expenses - tuition and fees required for enrollment or attendance

For more information, please see the links below for official guidance

AOTC vs LLC

IRS Comparison Chart

*Your student account online portal should have the 1098 (tax document) available that you can provide to your tax professional.

Disclaimer: The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Jeffrey Kurtz CPA LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Jeffrey Kurtz CPA LLC prior to taking any action based upon this information. Jeffrey Kurtz CPA LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

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