Tax Benefits for Families
Tax Breaks for Higher Education
Currently there are a number of tax incentives that can help defray the cost of higher education.
These incentives come in a couple of forms:
- Tax Credits, directly reduce the amount of tax you are liable for; and
- Tax Deductions, reduce the amount of income on which you pay taxes.
Check out the IRS Website at www.irs.gov and use the key word search Education Tax Credits.
The IRS Publication 970 is an informational overview of the higher education tax incentives. To find this publication do a search in your preferred internet browser, for IRS publication 970
If you have specific tax questions regarding tax credits and/or deductions you should contact your tax professional.
Currently schools are required to provide each eligible student with IRS Form 1098T. This is a record of tuition and fees billed during the calendar year. You can use Form 1098T to determine which of the tax incentive options apply to your situation. You should check with the school's Student Accounts, Business Office or Financial Aid Office with any additional questions.