Tax Benefits for Education Costs
Originally published at Fox Business.
Attention college students and their parents: There are two tax credits offered for postsecondary education.
Money used toward tuition, course materials, fees, books, and equipment can be considered for either the American Opportunity Credit or the Lifetime Learning Credit. Money spent on room and board is not eligible for either tax credit.
Almost every college, university, vocational school or other postsecondary institution eligible to participate in a student aid program administered by the Department of Education qualifies. Even some foreign schools qualify. In fact, the school should be able to tell you whether attendance at their institution makes you eligible to take either credit.
You can't take both credits for one student, but you may find that one may be more advantageous than the other depending on your circumstances.
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