Given the tax changes in recent years, it’s important to check which college expenses are tax deductible or allow you to take a credit and which expenses no longer qualify. Check out the list below. Tuition and fees are tax deductible if you’re re-filing your 2017 taxes.
What kind of education expenses can you claim on taxes?
When you claim a credit, such as the American Opportunity Credit or the Lifetime Learning Credit, only certain types of educational expenses will count. Tuition and fees are commonly considered qualified education expenses, but the details can vary beyond those costs.
Is the tuition deduction available for the 2018 tax year?
The Tuition and Fees Deduction. The deduction for tuition and fees is not available for the 2018 tax year. Those are the taxes you file in early 2019. The loss of this deduction also highlights how useful a 529 college savings plan can be for saving money on college expenses.
Is the interest on a student loan tax deductible?
Student loan interest is still tax deductible. This college expense deduction lets you reduce your taxable income by up to $2,500 for qualified student interest paid during the year. In this case, qualified means the loan was only for education expenses, not for other types of expenses.
However, you can still help yourself with college expenses through other deductions, such as the American Opportunity Tax Credit and the Lifetime Learning Credit. College graduates can also deduct the interest that they pay on student loans. The interest deduction does not require you to itemize your taxes.
How much can you save on taxes with a college savings account?
A tax credit, known as the Lifetime Learning Credit, is equal to 20% of the first $10,000 of qualified educational expenses incurred each year providing you with a tax savings of up to $2,000 per year. 7 Like many other provisions, there is an income threshold for these tax breaks as well.
Are there any tax breaks for graduating from college?
One useful tax break for college graduates and their parents is the student loan interest deduction. For your 2018 taxes, this deduction is worth the amount you paid in interest for your student loans, up to $2,500, which is the maximum deduction.
Are there any tax deductions for non credit courses?
Likewise, non-credit courses are not qualified education expenses, unless they are part of a degree program. For more information about eligibility and requirements for these benefits, review our article on tax credits for higher education .
