Tax Credits

Offset Your Education Costs

The Internal Revenue Service (IRS) provides tax benefits for education. Some tax benefits can be used to get some of the money back that you spent on tuition and loan interest or to maximize your college savings. To find out if you qualify for an educational tax credit and to find out which one is best for you, visit the Federal Student Aid site for more information.

Federal Student Aid - Tax Benefits for Higher Education

Here are some highlights to explore:

  • The American Opportunity Credit
  • The Lifetime Learning Credit
  • A Coverdell Education Savings Account
  • Qualified Tuition Programs (also known as 529 plans)
  • Student loan interest deduction
  • Using Individual Retirement Account (IRA) withdrawals for college costs