Hi, I'm Patrick, and I work for the IRS. If you or your children are attending college, you could save money just by filing your tax return. You could get up to $2,500 from the American Opportunity Tax Credit for each eligible student. Or up to $2,000 from the Lifetime Learning Credit. To find out if you're eligible, go to irs.gov/education. There you'll find the Interactive Tax Assistant that will walk you through the credit requirements. To be eligible, you must have the Form 1098-T, Tuition Statement. You usually receive this form from the school by January 31st. Be aware that some of the dollar amounts the school reports to you may differ from the amounts you can actually claim on your tax return. For example, the Form 1098-T might not include amounts paid for required books, supplies, or other qualifying expenses. These expenses can be claimed with the American Opportunity Tax Credit, but not with the Lifetime Learning Credit. When you figure either credit, you can only report the amounts actually paid during the calendar year. And you can claim only one of these credits per student, per year. Also, if you claim the American Opportunity Tax Credit, be sure to include the school's Employer Identification Number or EIN. And remember to keep records and receipts of the expenses you paid. As you plan for the costs of education, also keep in mind that 529 Savings Plans have significantly changed. To make the most of this education tax benefit, check out the details at irs.gov/taxreform. And if you find this video helpful, please share it. Thank You.
