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Tax Savings on Education Tax Credits & Deductions for Students and Families

Tax savings with Education Tax Credits & Deductions. Discover how the American Opportunity Tax Credit, Lifetime Learning Credit, student loan interest deductions, and 529 Plans can benefit students and families.

American Opportunity Tax Credit (AOTC)

During the first 4 years of higher ed., you can get a credit of up to $2,500 per each eligible student in a family.

Here are the full details by the IRS:

AOTC

Lifetime Learning Credit (LLC)

Unlike the AOTC which is during your first 4 years, the LLC has no limit on how many. years it cna be claimed. Both undergrads and grads can apply it if eligible.

Here are the details by the IRS:

LLC

Student Loan Interest Deduction

You can usually deduct up to $2,500 of student loan interest from your taxable income each year. Small, but helpful.

529 Plans and Coverdell Education Savings Accounts

These are like piggy banks for school expenses. You don't get a tax deduction, but any interest earned from them in tax-free as long as it's used for education.

***Disclaimer: This article is for informational purposes and is not meant to be financial or legal advice***

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