If you, your spouse or your dependent are heading off to college, here are some quick tips that could safe you some money come tax time:
1. American Opportunity Tax Credit- this credit can be taken up to $2,500 each year for an eligible student and can be taken for the first four years of college.
2. Lifetime Learning Credit- this credit allows you to take up to $2,000 off of your taxes and there is no limit on the number of years of college education needed.
3. One credit per student- you can claim only one type of education credit per student each year.
4. Qualified expenses- you can only get a credit for qualified expenses, including but not limited to tuition and fees.
5. Form 1098-T- in most cases, if you are eligible for a credit, you should receive this form from your school.
6. Income limits- these education credits are subject to income limitations and could be reduced or eliminated because of your income.