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TAX TIPS FOR THOSE FACING COLLEGE
BILLS
If you, your spouse or a dependent headed off to college last
fall, some of your costs may save you money at tax time.
Source: “Tax tips for those facing college bills, IRS offers suggestions for education tax credits” by Jeb Bing / Pleasanton Weekly
http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills
The AOTC is worth up to $2,500
per year for an eligible student.
You may claim this credit only for
the first four years of pursing
higher education. Up to 40% of the
AOTC is refundable. This means
that if you are eligible, you can
receive up to $1,000 of the credit
as a refund, even if you do not owe
any taxes.
AMERICAN
OPPORTUNITY
TAX CREDIT
You can save up to $2,000 on your
tax return with the Lifetime
Learning Credit. There is no limit
on the number of years that you
can claim the LLC for an eligible
student. However, you cannot
claim the LLC and the AOTC for
the same tax year.
LIFETIME
LEARNING
CREDIT
You may use qualified expenses to
figure your credit, whether it is the
AOTC or the LLC. These include
the costs you pay for tuition, fees
and other related expenses for an
eligible student. Refer to IRS.gov
for more on the rules that apply to
each credit.
QUALIFIED
EXPENSES
In most cases, you should receive
Form 1098-T, Tuition Statement,
from your school by Feb. 1, 2016.
This form reports your qualified
expenses. A copy of your form
1098-T, Tuition Statement is also
sent to the IRS.
FORM 1098-T
If you are in the U.S. on an F-1
Student Visa, the tax rules
generally treat you as a non-
resident alien for federal tax
purposes. To find out more about
your F-1 Student Visa status, visit
U.S. Immigration Support.
NON-RESIDENT
ALIEN
TO LEARN MORE
VISIT
WWW.RELIANCETAXGROUP.COM
OR CALL US AT
(877) 597-0153
Source: Bing, Jeb. “Tax tips for those facing college bills.” Pleasanton Weekly.com. Pleasanton Weekly, 13 August 2015. Web. 26 January 2016.
<http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills>

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Tax Tips for Those Facing College Bills

  • 1. TAX TIPS FOR THOSE FACING COLLEGE BILLS If you, your spouse or a dependent headed off to college last fall, some of your costs may save you money at tax time. Source: “Tax tips for those facing college bills, IRS offers suggestions for education tax credits” by Jeb Bing / Pleasanton Weekly http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills
  • 2. The AOTC is worth up to $2,500 per year for an eligible student. You may claim this credit only for the first four years of pursing higher education. Up to 40% of the AOTC is refundable. This means that if you are eligible, you can receive up to $1,000 of the credit as a refund, even if you do not owe any taxes. AMERICAN OPPORTUNITY TAX CREDIT
  • 3. You can save up to $2,000 on your tax return with the Lifetime Learning Credit. There is no limit on the number of years that you can claim the LLC for an eligible student. However, you cannot claim the LLC and the AOTC for the same tax year. LIFETIME LEARNING CREDIT
  • 4. You may use qualified expenses to figure your credit, whether it is the AOTC or the LLC. These include the costs you pay for tuition, fees and other related expenses for an eligible student. Refer to IRS.gov for more on the rules that apply to each credit. QUALIFIED EXPENSES
  • 5. In most cases, you should receive Form 1098-T, Tuition Statement, from your school by Feb. 1, 2016. This form reports your qualified expenses. A copy of your form 1098-T, Tuition Statement is also sent to the IRS. FORM 1098-T
  • 6. If you are in the U.S. on an F-1 Student Visa, the tax rules generally treat you as a non- resident alien for federal tax purposes. To find out more about your F-1 Student Visa status, visit U.S. Immigration Support. NON-RESIDENT ALIEN
  • 7. TO LEARN MORE VISIT WWW.RELIANCETAXGROUP.COM OR CALL US AT (877) 597-0153 Source: Bing, Jeb. “Tax tips for those facing college bills.” Pleasanton Weekly.com. Pleasanton Weekly, 13 August 2015. Web. 26 January 2016. <http://www.pleasantonweekly.com/news/2015/08/13/tax-tips-for-those-facing-college-bills>