Education Tax Credits and Other Options
These are not scholarships that you apply for and receive prior to attending classes. These tax credits are based on payments made for tuition and other related educational costs. They are available to individuals and families who file a tax return and owe taxes.
For details on the various options listed below, please refer to the Internal Revenue Service website. A clear and concise explanation of many of these tax credits is also available via a link on the National Association of Student Financial Aid Administrators' website NASFAA. Tax credits are subtracted from the tax an individual or family owes, rather than reducing the taxable income like a tax deduction.
- Hope Scholarship Tax Credit
- Lifelong Learning Tax Credit
- Education IRAs
- Using IRA withdrawals to pay for Higher Education Expenses
- Student Loan Interest Deduction
- Qualified State Tuition Programs
- Exclusion for Employer-Provided Education Assistance
If you have further questions concerning the tax credits or any of the other programs on the IRS website, you may want to contact the Internal Revenue Service directly and/or consult with a tax professional.
