Education credits

Education credits are tax benefits available to help offset the cost of higher education expenses. They reduce the amount of income tax you owe dollar-for-dollar or provide a direct tax refund, depending on the type of credit. Common credits include the American Opportunity Credit and the Lifetime Learning Credit, which can be claimed for tuition, course materials, and related expenses for yourself or dependents. Eligibility depends on factors like income, enrollment status, and qualified expenses. These credits aim to make education more affordable by lowering the financial burden through tax savings.