Educational Credits and Deductions
The federal tax incentives for education include the American Opportunity and Lifetime Learning Credits, the student loan interest deduction, Coverdell education savings accounts, and others. They have very different criteria, but one or more could help you to maximize your tax savings. The most beneficial options will depend on your current and anticipated expenditures for higher education.
Even if you or a dependent is not currently enrolled in a post-secondary school, it's important to start planning for that day. Some of the education tax breaks, such as Coverdell ESAs and 529 plans, allow you to save money today for future education expenses. With the costs of post-secondary education going up every year, the sooner you start saving, the easier it will be to handle those costs.
The rules for the various credits, including who can claim them and for what types of expenses they can be claimed, are very complex. Because they are so complex, many people either overlook them or are afraid to claim them. That is where we can help. Our experts will sit down with you, review your most recent tax return, and identify which, if any, of the education tax breaks you qualify for. Please contact our offices to schedule an appointment to discuss the various education benefits that may be available to you.
IRS Circular 230 Disclosure
Pursuant to U.S. Treasury Department Regulations, information contained in this article is not intended by TOPC Potentia P.C. to constitute a covered opinion pursuant to regulation section 10.35 or to be used for the purpose of (i) avoiding tax-related penalties under Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matters addressed herein.