Get the most out of your college tax benefits
The tuition and fees deduction expired last year. Fortunately, you may still be able to benefit from other education tax benefits, including the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit.
Take a look at the highlights below to better understand these benefits:
* The AOTC is per student, while the Lifetime Learning Credit is per tax return.
* Either the parents or their dependent child can claim the credit each year, but not both.
* You can't use these credits to pay expenses for room and board, health costs or transportation. While book expenses required for enrollment can be deductible, other book expenses are excluded from the credits.
* If you received scholarships, grants and other tax-free assistance, or have used educational expenses for one of these credits, you may not reuse that expense for other tax benefits.
In some cases, it may be more beneficial to let your dependent claim an educational credit rather than including him or her on your tax return. We can help you figure out what's best for your situation. Contact us today.