Take advantage of education tax credits

November 2, 2011

School-books-teacher-apple_2How's school going?

Classes are probably a lot easier when you don't have to worry so much about paying for them.

Your good old Uncle Sam can help out a bit. The tax code offers a couple of tax credits to cover some education costs.

Remember, tax credits are better than deductions because they give you a dollar for dollar offset against your tax bill. The best credits also can get you a refund from the Internal Revenue Service when you don't owe any taxes.

That's why the discussion of the American Opportunity and Lifetime Learning tax credits are today's Weekly Tax Tip.

The American Opportunity tax break, created as part of the 2009 stimulus bill and subsequently extended through 2012, can get you $2,500 per student for costs incurred during the first four years of college. Even better, $1,000 of the credit is refundable.

As its name implies, the Lifetime Learning credit can be claimed in connection with a wider range of school expenses. This tax break of up to $2,000 per tax return can be used in connection with undergraduate, graduate and professional degree courses.

These are just two of the tax-favored ways to pay for the ever-growing cost of college. Whether you're a student or the proud parent of one, be sure to do your homework so you can get the most possible help toward that degree and beyond.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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