Check out the information provided below from the National Association of Student Financial Aid Administrators (NASFAA) regarding tax benefits for higher education.
The federal government provides a number of tax incentives that can help lower the cost of higher education. These incentives include:
- Tax credits directly reduce the amount of tax you pay.
- Tax deductions reduce the amount of your income that is taxed.
You may qualify for more than one of these incentives, but there are some restrictions. It’s a good idea to calculate your taxes multiple ways to find the maximum benefits available to you. For more information, on any of these benefits, refer to IRS Publication 970 or consult a qualified tax advisor.