Tax Credits Help to Offset Higher-Education Expenses

There are two Federal tax credits available to help you offset the costs of higher education for yourself or your dependents. These are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).

To qualify for either credit, you must pay post-secondary (i.e., after high school) tuition and fees. The credit may be claimed by the parent or the student, but not by both. If the student is claimed as a dependent, the student cannot file for the credit. For each student, you can choose to claim only one of the credits in a single tax year. If you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis. You can claim the AOTC for your sophomore daughter and the LLC for your senior son.