Anyone pursuing higher education, including specialized job training and grad school, knows it can be pricey. Eligible taxpayers who paid higher education costs for themselves, their spouse or dependents in 2021 may be able to take advantage of two education tax credits.
The American opportunity tax credit and the lifetime learning credit can help offset education costs by reducing the amount of tax they owe. If the American opportunity tax credit reduces the tax to zero, the taxpayer could receive a refund up to $1,000.
To be eligible to claim either of these credits, a taxpayer or a dependent must have received a Form 1098-T, Tuition Statement, from an eligible educational institution. However, there are exceptions for some students. To claim either credit, taxpayers must complete Form 8863, Education Credits, and file it with their tax return.
Here are some key things taxpayers should know about each of these credits.(Amercan Opportunity Tax Credit or Lifetime Learning Credit)
• Worth a maximum benefit of up to $2,500 per eligible student
• Only available for the first four years at a post-secondary or vocational school
• For students pursuing a degree or other recognized education credential
• Partially refundable; Taxpayers could get up to $1,000 back
• Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify
• Available for all years of postsecondary education and for courses to acquire or improve job skills
• Available for an unlimited number of tax years
세금보고시 대학생 자녀를 둔 납세자들 또는 대학생 본인은 세금보고시 American opportunity tax credit이나 Lifetime Learning Credit을 신청해서 절세가 가능합니다.
통상적으로 2가지 크레딧을 비교해서 더큰 혜택을 볼수 있는 방법으로 선택해서 세금보고를 하실 수 있습니다.
