Tuition Reimbursement & Tax Write Offs

deductions and credits provide incentive for taxpayers to enroll in school. deductions directly reduce taxable income, whereas, credits reduce the amount of you owe on a dollar-for-dollar basis and can even result in a refund.

Hope Credit
The Hope Credit is a nonrefundable tax credit available to students during the first two years of college. Students outside the Midwestern Disaster Area qualify for up to $1,800 benefit.
Lifetime Learning Credit
The Lifetime Learning Credit is a nonrefundable tax credit. Students outside the Midwestern Disaster Area qualify for up to $2,000 benefit.
Student Loan Interest Deduction
Some of the interest paid on student loans is eligible for a tax deduction. However, the authority requires that the student loan funds not be used for personal expenses.
American Opportunity Tax Credit
The American Opportunity Tax Credit is a refundable tax credit offered in 2009 and 2010. This is available during the first four years of studies with a maximum benefit of $2,500.
Double Benefits
Only one incentive is allowed each year per student.

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