Education: Deductions, Credits, and Answers

There’s no doubt about it, education tax benefits can make a huge difference in your refund. The American Opportunity Tax Credit (AOTC) typically offers the largest tax break. But if you don’t qualify for that, there’s always the Lifetime Learning Credit (LLC). And let’s not forget student loan interest deductions. 

So there’s much to learn about education tax benefits. For example, did you know that most stipends and some scholarships could be taxable income to the student? And are you aware of 529 education savings plans where the earnings are tax-free if used for qualified education expenses? Some states even offer tax benefits for contributing to them. 

The resources below will help provide the answers you need so you can confidently file your tax returns.

• College and Education Tax Tips - The resource of all resources. All about education and taxes!
• How do Education Tax Credits Work? - The difference, what they are, and who claims it.
• What education tax credits are available? - If you like charts, this is for you. It’s a side-by-side comparison of the two big education tax credits.
• 529 Plans and Taxes: Deductions, Tax-Free Withdrawals & More - Just as the title says - all things 529 plans!
• Cash for College: Tax-Free 529 Plans - We do like our 529 plans - a fun and helpful read!
• Can I Claim a Student Loan Interest Deduction? - It’s more than just borrowing money.

BONUS: Can Debt Forgiveness Cause a Student Loan Tax Bomb?

If you need tax advice or have questions that aren't answered in the links above, please ask in our Taxes forum that best fits your needs!