Federal income tax credits can be used to offset college tuition by up to $2,500 per student per year as long as certain criteria is met.
Education credits benefit students because they create tax savings, while adjustments and deductions reduce income before tax is calculated. There are two main education credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
It is important for students and their families to plan ahead to find out which education credit makes the most sense for their situation.