Tax Credits
Tax credits such as the Hope Scholarship, American Opportunity and Lifetime Learning are credits subtracted directly from annual taxes, rather than reducing taxable income like a tax deduction. An individual or family must file a tax return to take advantage of them.
The actual amount of the credit depends on the family's income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition.
Learn more about educational tax credits through your tax preparer, the Internal Revenue Service (IRS), the US Department of Education and the American Association of Community Colleges.