Education Credits: Attending college and obtaining a degree opens employment doors to you that can put you on a path to success. Starting incomes are typically higher for college graduates than for those who opted not to attend a college or university. But, the cost of higher education can be a real deterrent for many, and so the decision might be made to forego college. For those that take the plunge though, their education eventually pays off with a rewarding career, and can even be a tax benefit.
Education credits are one way you can put your education to work for you. There are a few options and ways to claim this credit, such as:
- The American Opportunity Tax Credit is a credit used by those that pay for qualifying education expenses during the tax year. The credit can be claimed for up to $2,500 per child for which expenses were paid.
- The Lifetime Credit will allow you to deduct up to $2,000 per child for qualifying expenses, but may also be capped at only $1,800 per child.
Both credits are available through tax year 2017, giving many taxpayers the possibility of thousands of dollars in tax credits over the next couple of years. The calculation is complex, and should be performed by a trained professional. While these credits are helpful, you only see those benefits if you arrive at the proper figure when preparing your taxes. A miscalculation will be adjusted by the IRS, and might lead to an audit or investigation. To make sure you are eligible for these credits, and are applying them properly, speak with legal tax professional today.
If you have questions about taxes, education credits, or other deductions; call us for help. Contact the Florida offices of the www.taxproblemsolver.com today to speak with a tax resolution attorney, CPA or IRS Enrolled Agent (EA). Call 407-629-5923 or 727-894-2099. Or email us at steve@TaxProblemSolver.com. We help taxpayers NATIONWIDE and are here to provide quality assistance to your most important tax issues. #EnrolledAgent @HeinkelTaxLaw