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Eligible Educational Tax Breaks
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American Opportunity Tax Credit (AOTC)
Covers up to 2,000 and 25% of the next
Lifetime Learning Credit (LLC)
Up to 10,000 of qualified education expenses.
Tuition and Fees Deduction
Deduction of up to
Student Loan Interest Deduction
Allows you to deduct up to
529 College Savings Plan
Earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college. Contributions are not deductible on your federal tax return.
Coverdell Education Savings Account (ESA)
Tax-advantaged investment account for educational expenses, including K-12 expenses. Contributions are made with after-tax dollars, but earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free.
Education Savings Bond Program
Interest earned on series EE or I savings bonds issued after 1989 may be tax-free if used for qualified education expenses at eligible institutions. Income limits apply.
Employer-Provided Educational Assistance
Up to
Business Deduction for Work-Related Education
If you're self-employed, you can deduct the costs of qualifying work-related education directly from your self-employment income. This includes tuition, books, supplies, laboratory fees, and similar items.
Qualified Tuition Program (QTP)
Also known as a 529 plan, allows for tax-free distributions for qualified higher education expenses, which might include tuition, fees, books, and room and board.
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