SW Vegas News

University of Phoenix recently issued the following announcement.

At a glance

• Two tax credits are available for education expenses through the IRS: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC).
• Tax credits reduce tax obligations in relation to expenses paid toward higher education.
• The AOTC only applies to the first four years of higher education, while the LLC can be applied to undergraduate, graduate and professional degree courses.
• For a more comprehensive overview of tax benefits connected to education expenses, visit: Publication 970 (2021), Tax Benefits for Education | Internal Revenue Service (irs.gov)

Pursuing your education can get expensive. Even after factoring in scholarship and grant opportunities, it’s helpful to offset costs wherever you can. That’s where tax credits for education expenses come in. By reducing your tax obligation in relation to your educational expenses, these credits can make earning your degree that much more affordable.

In this article, we’ll cover the two major federal tax credits for education: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC). We’ll explore the differences between the two as well as how you can begin the application process.

Please note the intent of this article is to provide a general overview of income tax credits related to qualified educational expenses. Please seek the advice of a tax professional before taking a tax position.

Original source can be found here.