If you are celebrating now that you have graduated, congratulations! The IRS is giving some tips to the students who belong to the High School Class of 2024. Tax benefits for education will be more than welcome.
In fact, it will not be difficult for parents and students to find out if they qualify for a tax credit from the IRS. Currently, you can take advantage of the LLC (Lifetime Learning Credit) or AOTC (American Opportunity Tax Credit).
How can I find out if I qualify for an IRS tax credit?
The Internal Revenue Service recommends the High School Class of 2024 using ITA. ITA is the Interactive Tax Assistant tool. Actually, it can help parents and students determine whether they qualify for educational deductions or credits.
If you are a foreign student in the United States, there are additional requirements. Those students who are dependents and have an ITIN also have other requirements.
Do not forget that it is not just about deductions and credits, savings plans are also an important factor to take into account. Coping with your higher education expenses will be necessary after such high inflation and cost of living.
Who can claim an education credit from the IRS?
It is important that you check the specific requirements for each credit. However, there are 3 general requirements the Internal Revenue Service set for each tax credit for students.
- Either you, a third party, or your dependent pays “qualified education expenses for higher education” in 2024.
- Be an eligible student and be enrolled at any eligible educational institution in the United States.
- Eligible students must be: a dependent, your spouse, or yourself listed on your tax return.
Do not forget that if you qualify for the American Opportunity Credit and the Lifetime Learning Credit in the same year, you must choose one. That is, you can claim either credit but not both.