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.