{"id":278,"date":"2024-08-09T13:13:43","date_gmt":"2024-08-09T13:13:43","guid":{"rendered":"https:\/\/blog.suryapadhiea.com\/blog\/?p=278"},"modified":"2024-08-09T13:15:32","modified_gmt":"2024-08-09T13:15:32","slug":"taxpayers-should-review-the-education-tax-credits-before-they-file","status":"publish","type":"post","link":"https:\/\/blog.suryapadhiea.com\/blog\/tax-tips\/taxpayers-should-review-the-education-tax-credits-before-they-file\/","title":{"rendered":"Taxpayers should review the education tax credits before they file"},"content":{"rendered":"\n<p>IRS Issue Number: Tax Tip 2024-67<\/p>\n\n\n\n<p>There are&nbsp;<a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fnewsroom%2Ftax-benefits-for-education-information-center\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/Zku2LmCoisIxLrbHXW2EMdqDUrXtZRD3WYaTP06YYLQ=364\">two education tax credits<\/a>&nbsp;designed to help offset education costs: the&nbsp;<a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fcredits-deductions%2Findividuals%2Faotc\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/5baZpbBAriCNk9s-Y20yoqFDv_FtTlRddbxKOZoL0jQ=364\">American Opportunity Tax Credit<\/a>&nbsp;and the&nbsp;<a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fcredits-deductions%2Findividuals%2Fllc\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/GZ0-FLkMyxbbjA5up8veWvpcWsZkiA_J_3Kg1LoOXpY=364\">Lifetime Learning Credit<\/a>.<\/p>\n\n\n\n<p><strong>Eligibility requirements<\/strong><strong><br><\/strong>For both tax credits, to be eligible:<\/p>\n\n\n\n<ul>\n<li>The taxpayer, their spouse or their dependents must take post-high school coursework in tax year 2024.<\/li>\n\n\n\n<li>The student must have a <a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fforms-pubs%2Fabout-form-1098-t\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/gIz5a9Uqv64En3WlYQbYxEIfizLEyYvi-eaBGB9dT7c=364\">Form 1098-T, Tuition Statement<\/a>, from an eligible educational institution. There are <a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fp970.pdf\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/ODhofDU_1LjCXZ8VMCcUWm-wN34fOC1ViC-kJH3MeAU=364\">exceptions<\/a> for some students.<\/li>\n<\/ul>\n\n\n\n<p><strong>Things taxpayers should know about the education tax credits<\/strong>.<br>The American Opportunity Tax Credit is:<\/p>\n\n\n\n<ul>\n<li>Worth a maximum benefit of up to $2,500 per eligible student.<\/li>\n\n\n\n<li>Available only for the first four years at an eligible college or vocational school.<\/li>\n\n\n\n<li>For students pursuing a degree or other recognized education credential.<\/li>\n\n\n\n<li>Partially refundable. People could get up to $1,000 back.<\/li>\n<\/ul>\n\n\n\n<p>The Lifetime Learning Credit is:<\/p>\n\n\n\n<ul>\n<li>Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify.<\/li>\n\n\n\n<li>Available for all years of postsecondary education and for courses to acquire or improve job skills.<\/li>\n\n\n\n<li>Available for an unlimited number of tax years.<\/li>\n<\/ul>\n\n\n\n<p><strong>Claiming the credits <br><\/strong>To claim either credit, taxpayers must complete&nbsp;<a href=\"https:\/\/links-1.govdelivery.com\/CL0\/https:%2F%2Fwww.irs.gov%2Fforms-pubs%2Fabout-form-8863\/1\/010001912818bd96-f7b089d8-4072-477a-97b2-e2de693e0a42-000000\/XF90gov-gatWF1WXepjDTchN3KJ7preK_x1rENzJxl8=364\">Form 8863, Education Credits<\/a>, and file it with their federal tax return.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"http:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/10\/Corporate-LinkedIn-Banner.jpg\" alt=\"\" class=\"wp-image-153\" width=\"873\" height=\"297\" srcset=\"https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/10\/Corporate-LinkedIn-Banner.jpg 646w, https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/10\/Corporate-LinkedIn-Banner-300x102.jpg 300w\" sizes=\"(max-width: 873px) 100vw, 873px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>IRS Issue Number: Tax Tip 2024-67 There are&nbsp;two education tax credits&nbsp;designed to help offset education costs: the&nbsp;American Opportunity Tax Credit&nbsp;and the&nbsp;Lifetime Learning Credit. Eligibility requirementsFor both tax credits, to be eligible: Things taxpayers should know about the education tax credits.The American Opportunity Tax Credit is: The Lifetime Learning Credit is: Claiming the credits To claim [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14,9,7],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/278"}],"collection":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/comments?post=278"}],"version-history":[{"count":2,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/278\/revisions"}],"predecessor-version":[{"id":283,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/278\/revisions\/283"}],"wp:attachment":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/media?parent=278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/categories?post=278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/tags?post=278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}