There's great news for parents and students: the federal government provides a number of tax incentives that can help defray the cost of higher education. These incentives come in a couple of forms: Tax Credits, which directly reduce the amount of tax you are liable for; and Tax Deductions, which reduce the amount of income on which you pay taxes.
Our annual guide to federal tax benefits for higher education gives you an overview of all the options that may be available to you....
Current Tax Year-
- 2016 Tax Benefits for Higher Education
- Understanding the 1098T Form
- IRS Publication on tax credits
- Prior Year Tax Breaks for Higher Education
Visit the studentaid site for more info on tax benefits, Coverdell Accounts, 529 Plans and IRA withdrawals.