In the IRS Tax Tip 2022-123, the IRS reminds college students and any taxpayers that might claim them, that there are two education credits available for them:

1. American Opportunity tax credit

  • Worth a maximum benefit of up to $2,500 per eligible student
  • Only available for the first four years at a post-secondary or vocational school
  • For students pursuing a degree or other recognized education credential
  • Partially refundable; Taxpayers could get up to $1,000 back

2. Lifetime learning

  • 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

The IRS has an Interactive Tax Assistant tool to know if you qualify – https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

The Tax Assistant tool will request the following information to see if you are eligible:

  • Filing status.
  • Student’s enrollment status.
  • Your adjusted gross income.
  • Who paid the expenses, when the expenses were paid, and for what academic period.
  • If any expenses were paid with tax-exempt funds.
  • If any expenses were paid with distributions from a Coverdell Education Savings Account or Qualified Tuition Program.