Summary of Common Federal Education Tax Benefits

Financial Education

Summary of Common Federal Education Tax Benefits

Education tax benefits include both credits and deductions. A tax credit reduces the amount of income tax you may have to pay while a tax deduction reduces the amount of income subject to tax. Below, you’ll see a chart highlighting the four most common education tax benefits. (Note: The American opportunity credit, lifetime learning credit and tuition and fees deduction will not be allowed unless the student receives a Form 1098-T from an eligible educational institution.)

summary of benefits sheet