This article from Nerdwallet focuses on education tax credits and deductions you can take on your federal taxes.
Bob Donica
Source: Nerdwallet | Repost RE Donica & Associates 2/2/2023 –
If you paid for college in the last year, you may be able to claim the American opportunity credit or lifetime learning credit, or the the tuition and fees deduction. The American opportunity credit is generally the most valuable education tax credit, if you qualify.
You can claim these education tax credits and deductions as a student if you’re not claimed as a dependent on anyone else’s tax return. Parents can claim the credit for a student who is a dependent. Spouses can claim the credit if they use the married filing jointly status.
American opportunity credit
How it works: You can lower your tax bill by up to $2,500 if you paid that much in undergraduate education expenses last year. The American opportunity tax credit lets you claim all of the first $2,000 you spent on tuition, school fees and books or supplies needed for coursework — but not living expenses or transportation — plus 25% of the next $2,000, for a total of $2,500.
