Federal Tax, Tax

School’s back and so are the bills…

School’s back in session. For many parents and students in higher education, that means school bills are also back. To help offset those costs, eligible taxpayers who are footing the bills may be able to reduce the tax owed on next year’s tax returns by taking advantage of one of two available tax credits. One is the American Opportunity Tax Credit, which is worth up to $2,500 and is partially refundable (which means that, even if the credit reduces the tax owed to zero, part of the credit can be refunded). The other option is the Lifetime Learning Credit, worth up to $2,000 per year, per tax return, no matter how many students qualify. Learn more here. Contact the Cg Team for more information. © 2019

“Two Education Credits Help Taxpayers with College Costs.” Internal Revenue Service. IRS Tax Tip 2019-125, September 11, 2019. https://www.irs.gov/newsroom/two-education-credits-help-taxpayers-with-college-costs.