There are two education tax credits designed to help offset education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit.

Eligibility requirements

For both tax credits, to be eligible:

• The taxpayer, their spouse or their dependents must take post-high school coursework in tax year 2024.
• The student must have a Form 1098-T, Tuition Statement, from an eligible educational institution. There are exceptions for some students.

Things taxpayers should know about the education tax credits

The American Opportunity Tax Credit is:

• Worth a maximum benefit of up to $2,500 per eligible student.
• Available only for the first four years at an eligible college or vocational school.
• For students pursuing a degree or other recognized education credential.
• Partially refundable. People could get up to $1,000 back.

The Lifetime Learning Credit is:

• Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify.
• Available for all years of postsecondary education and for courses to acquire or improve job skills.
• Available for an unlimited number of tax years.

Claiming the credits

To claim either credit, taxpayers must complete Form 8863, Education Credits, and file it with their federal tax return.

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Source: IRS