What Are the Best Tax Credits for Education

Students who would like to get a bit of respite on the high cost of their education will find a new blog post on American Tax Service very resourceful. The post offers some insight into two of the best educational tax credits available to them in the upcoming tax year. And it seeks to help them make an informed decision on which of the educational tax breaks is best suited to their needs as they cannot use more than one in any given tax year.

The first of the tax credits explained by the American Tax Service is the American Opportunity Credit. To be eligible, the student must be enrolled at least half-time per academic period during the tax year in a school currently participating in the student aid program of the Federal government. Students who are already done with the first four years of schooling are excluded from the scheme as well as students with felony drug convictions. The American Opportunity Credit can be worth as much as $2500 and can be claimed on anything a student needs to attend school including tuition, books, and supplies. It is best suited for undergraduate college students

The other tax credit is the Lifetime Learning Tax Credit. To be eligible, a taxpayer needs to only take a course per year at a school that is enrolled in the Federal student aid program. The credit does not also consider whether it is the first four years of schooling or not. Regardless of how many years you have spent in school, you can qualify for this tax credit. The Lifetime Learning Credit can also be used for anything from tuition to supplies but all supplies must be purchased directly through your school. The Lifetime Learning Credit is worth $2,000. However, it is a nonrefundable tax credit. It is best suited for students in postgraduate programs.

To claim any of the education tax credit, taxpayers must fill in and file Form 8863 with their tax returns. The American Tax service recommends using the H&R Block online tax filing. It will provide the form and easily help calculate exactly how much you are entitled to.

For more information, please read the original blog post by the American Tax Service here, https://americantaxservice.org/best-education-tax-credits/

A Guide to the Education Tax Credits 2018, 2019

College is more expensive than ever, but the Education Tax Credit is available to help cut down on educational expenses. Taxpayers or dependents who would like to save more on their tax bills in 2018 will find a new post by the National Tax Report on the education tax credit insightful. The blog post reveals the two separate routes to obtaining the education tax credits and student tax deductions, their benefits and all they need to know about qualifying for them.

There are two types of education tax credits – the American Opportunity Tax Credit and the Lifetime Learning Credit.

The American Opportunity Credit can wipe as much as $2,500 off taxes in education expenses. The credit covers everything from tuition fees to textbooks and $1,000 of the credit is fully refundable. To qualify for the American Opportunity Tax Credit, the taxpayer must be;

– Enrolled at a school that is part of the Federal Student Aid Program

– Must at the very least be a part-time student.

– Cannot have any felony drug convictions.

The Lifetime Learning Tax Credit is the other education tax credit and it is more accessible. It is a non-refundable credit but anyone who attends at least one course per year at a school enrolled in the Federal Student Aid Program is eligible for it. The tax credit covers tuition and supplies (purchased from the school) and has a maximum value of $2,000.

Taxpayers can easily determine how much they are entitled to by checking out the education tax credit and deduction calculator. Just by answering some basic questions, they will get an accurate idea of how much can be wiped off their tax bill.

To claim the education tax credit, taxpayers will need to file IRS Form 8863. The form is available through software like TurboTax online, which will automatically fill them out and submit it along their tax return using the information that they provide. Also, by using TurboTax taxpayers can get an accurate estimation of how much is owed the IRS in taxes this year, or if they are lucky enough to be entitled to a tax refund.

For more information about the education Tax credit, please read the original post on National Tax Report here, https://nationaltaxreports.com/what-is-an-education-tax-credit/