FAFSA School Code: 002840
TAP Codes: BS—0890
Tax Credit for Higher Education Expenses
Two tax credits help offset the costs (tuition, fees, books, supplies, equipment) of college or career school by reducing the amount of your income tax:
- The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of school as the student works toward a degree or similar credential.
- The Lifetime Learning Credit allows you to claim up to $2,000 per student per year for any college or career school tuition and fees, as well as for books, supplies, and equipment that were required for the course and had to be purchased from the school.
Qualified Tuition Programs (529 Plans)
A 529 plan is established by a state of school that allows you to prepay or save up to pay education related expenses. Learn more about state 529 plans .
Student Loan Interest Deduction
You can take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. The maximum deduction is $2,500 a year.
For detailed information about these programs, refer to:
- IRS Publication #970
Tax Benefits for Higher Education