Monday, October 20, 2014
IRS REMINDS TAXPAYERS ABOUT EDUCATION CREDITS
With schools back in session, the
IRS has issued a reminder to taxpayers not to overlook available tax credits
for education expenses. Tax credits are applied directly against the income tax
you owe. Two available credits: the American Opportunity Tax Credit (AOTC) and
the Lifetime Learning Credit (LLC). The AOTC can be up to $2,500 annually for
an eligible student and is 40% refundable. That means you could get money back
when the credit exceeds your tax bill. The maximum LLC is $2,000 and is not
refundable. You can claim only one type of education credit per student each
year.
Labels:
tax planning