Optima Tax Relief Reviews Two Education Credits that can Help Taxpayers Save Money

Published by
Addison Yes

With school back in session, both parents and students are looking for ways to save money that can help lower the cost of education. One way taxpayers can save the most money on school expenses is by looking into tax credits that can help cut the cost in half. These credits assist those who want to get the most out of their savings by reducing the amount of tax someone owes on their tax return. A credit can also reduce a tax balance to less than zero, and taxpayers may even get a refund.

Taxpayers that pay for higher education will most likely see savings when they file their taxes next year. Optima Tax Relief reviews how taxpayers can find out if they’re eligible for certain education tax benefits.

There are two credits available to taxpayers that will help offset the costs of higher education. Qualifying taxpayers can use The American opportunity tax credit and the lifetime learning credit can reduce the amount of income tax owed. Taxpayers can utilize Form 8863, Education Credits, to claim the credits.

In order to qualify for the American opportunity tax credit or the lifetime learning credit, eligible taxpayers or a dependent must have received a Form 1098-T from an eligible educational institution.

The American opportunity tax credit is:

  • Worth a maximum benefit up to $2,500 per eligible student.
  • Only the first four years at an eligible educational institution will be allowed.
  • Students pursuing a degree or other recognized education credential.
  • Qualifying education expenses can be reimbursed up to $1,000.

The lifetime learning credit is:

  • Worth a maximum benefit up to $2,000 per tax return.
  • Available for all years of posts econdary education and for courses to help improve job skills.
  • Available for an unlimited number of tax years.
Optima Tax Relief Reviews Two Education Credits that can Help Taxpayers Save Money was last updated November 5th, 2020 by Addison Yes
Optima Tax Relief Reviews Two Education Credits that can Help Taxpayers Save Money was last modified: November 5th, 2020 by Addison Yes
Addison Yes

Disqus Comments Loading...

Recent Posts

Beware Of These Biggest Mistakes That Can Be Fatal For Small Businesses

While certain small businesses became viral and rose to fame while some just couldn't blow…

1 hour ago

10 benefits of Using Tablets in the Classroom

Tablets in the classroom are relatively a new concept for people. But did you know…

2 hours ago

Employee Monitoring – Top Rated Monitoring Software for Small Businesses

These monitoring tools will help you check the ones who accomplish their task assigned and…

3 days ago

Is it Worth Starting a Business if you are Still a Student?

Many people want to make money, rather than sit for hours writing boring term papers.…

3 days ago

A Software Developer’s Guide to the Top Test Automation Best Practices

When establishing a test automation culture, you must first look at the three main factors:…

4 days ago

How to USB Sync Outlook to iPhone now that iTunes has Dropped it

The most secure way to move your valuable customer information and schedule is to use…

4 days ago