There are two education credits you may claim based on qualified education expenses paid to an eligible postsecondary educational institution.
There are two education credits you may claim based on qualified education expenses paid to an eligible postsecondary educational institution. (Photo: Shared Economy Tax)
Education Credits to Help with Your School Needs
To figure out and claim your education credits, you need to use Form 8863. This is based on the qualified expenses paid to an eligible postsecondary educational institution. There are two education credits that you may use. The American Opportunity Credit can be used and some may be refundable. Another is the Lifetime Learning Credit which is nonrefundable.
According to a published post by TaxSlayer, you can choose only one credit per child in a year. If you are eligible for one, this means that you are also eligible for the other. You can claim both of these credits as long as it will be a different student in a different year.
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There are two education credits you may claim based on qualified education expenses paid to an eligible postsecondary educational institution. (Photo: Y-Axis Foundation)
Education Credit Eligibility
The credits will be based on the qualified educational expenses in 2022 and in the first 3 months of 2023. If you paid $1,500 in December 2022 you may be able to use that $1,500 for your 2022 education credit. Qualified education expenses paid for by someone other than the student are treated as paid by the student.
On the other hand, qualified education expenses paid by a student claimed as a dependent on your tax return are treated as paid by you. This means that you are treated as having paid expenses that were paid from your dependent student’s earnings, gifts, inheritances, savings, etc. Tuition and certain related expenses at an eligible institution are considered qualified educational expenses for the purpose of this credit.
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