If you or your kids are attending college, you can save money on the cost of tuition, books, and fees just by filing your tax return.
For example, you can get up to $2,500 from the American Opportunity Tax Credit or up to $2,000 from the Lifetime Learning Credit.
To find out if you’re eligible, go to the IRS’ education center on IRS.gov. There you’ll find a tool called the Interactive Tax Assistant that will walk you through the entire process.
To help you figure these credits, you should only report the amounts that you actually paid in education expenses during the year, even if the expenses that you paid are different from the amounts shown on either Box 1 or 2 of your Form 1098-T. Keep records and receipts of expenses paid.