SDM Accounting Insights: Uncle Sam May Provide Relief from College Costs on Your Tax Return

October 01, 2019 NaN
SDM Accounting Insights: Uncle Sam May Provide Relief from College Costs on Your Tax Return
SD Mayer
SDM Accounting Insights: Uncle Sam May Provide Relief from College Costs on Your Tax Return

Oct 01 2019 | NaN

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Show Notes

We all know college is expensive. Fortunately, there are two sizable federal tax credits for higher education costs that you may be able to claim. The American Opportunity credit generally provides the biggest benefit to most taxpayers. It offers a maximum benefit of $2,500. But it phases out based on modified adjusted gross income (MAGI). For 2019, the MAGI phaseout ranges are between $80,000 and $90,000 for single taxpayers, and between $160,000 and $180,000 for married joint filers. There’s also the Lifetime Learning credit, which equals 20% of qualified education expenses for up to $2,000 per tax return. There are requirements to qualify for both credits. Contact us for more information.

https://www.sdmayer.com/insights/blogs/individual-tax/tax-credit/

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