Education Tax Credits

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 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.

About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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