Student Loan Interest & Tuition and Fees Deductions

Student Loan Interest & Tuition and Fees Deductions

The US tax code provides several incentives for higher education expenses. Incentives are provided in the form of credits or deductions. Credits reduce the amount of income tax you must pay. Deductions reduce the amount of income upon which you are taxed. You may not claim both a deduction and a tax credit for the same expense payments.

American Opportunity & Lifetime Learning Credits

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The American Opportunity Credit is a credit of up to $2,500 for adjusted qualified education expenses paid for each student that qualifies. …