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TAX CREDITS

There are two tax credits available to help you offset the costs of higher education. These may allow you to reduce the amount of your income tax. They are the American Opportunity Credit and the Lifetime Learning Credit. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.

For more information on these credits, consult the IRS Publication 970, which is available at any IRS office or may be downloaded from their web site at www.irs.ustreas.gov. Your tax advisor will be able to determine your individual eligibility.

 


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