There are many tax benefits within the tax code to help pay for college expenses. Two of the most popular are the Lifetime Learning Credit (LLC) and the American Opportunity Tax Credit (AOTC). Not sure which is best? Here are some key differences:
Both of these credits are available to you, your spouse, and a student you claim as a dependent on your tax return. Here are a couple of other tips to consider:
- You may only cover a qualified expense in one program. So if you have a scholarship, you must apply this first and may not use the same expenses to qualify for either an LLC or AOTC.
- You can use both programs for different students, but not for the same student in a single year.
- There are other educational benefits to consider as well. These include Tuition and Fees deduction, student loan interest deduction, and other educational related benefits.
Still confused? Ask for assistance in determining which educational tax benefits make the most sense for your situation. It can change from year to year.
Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here. All rights reserved.