Optima Tax Relief Reviews how Tax Credits Could Help Offset the Cost of Higher Education

Sep 10, 2020 by

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If you are going to school in person, online, full-time or even part-time, higher education can be expensive and the bill to go to school can rack up quickly. Fortunately, the IRS offers tax credits that can help students offset the cost of any school expenses. These tax credits can also be used to offset the amount of money a taxpayer could owe after filing their tax return and if a taxpayer is set to receive a refund, this tax credit could increase the amount of a refund you receive after filing.

Optima Tax Relief reviews tax credits taxpayers can use in order to see savings when filing their tax return. If taxpayers, their spouses, or their dependents take post-high school coursework, they may also be eligible for tax benefits.

The IRS offers two credits to taxpayers that are currently in a higher education program and looking for ways to help save money on schooling. If eligible, taxpayers could either utilize the American Opportunity tax credit and the lifetime learning credit. Taxpayers can use Form 8863 or Education Credits to claim the credits. 

In order to be eligible for claiming any of the credits listed above, a taxpayer or dependent must have received a Form 1098-T from a qualifying educational institution

Here are useful key items taxpayers should know about the filling tax credits:

The American opportunity learning credit:

  • Eligible students can have a maximum benefit of up to $2,500 when filing their tax return.
  • The tax credit only covers the first four years at an eligible college or vocational school.
  • Students that are pursuing a degree or other recognized educational credit. 
  • The credit is partially refundable. Students could get up to $1,000 back.

The lifetime learning credit:

  • Worth a maximum benefit of up to $2,000 per tax return, per year.
  • The credit is accessible and available for all years of postsecondary educations and for courses to acquire or improve job skills.
  • Available for an unlimited number of tax years.
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