Student Topics

Get Smart with Tax Breaks for Students

• The maximum Hope Credit tax break is $1,650 per student ($3,300 for Gulf Opportunity Zone students).
• The maximum Lifetime Learning Credit is $2,000 per return (up to 20 percent of the first $10,000 of expenses).
• Taxpayers with student loans can deduct up to $2,500 of their student loan interest as an adjustment to income.
• You can deduct up to $4,000 in post-secondary education expenses; however, you cannot claim the tuition deduction and the Hope or Lifetime Learning Credit for the same student.
• You may also contribute up to $2,000 per year to a Coverdell Savings Account for your children, but that is a savings plan, not a tax credit or deduction.

More on Education Tax Breaks

• Learn more about the Lifetime Learning Credit
• Read more about the Hope Credit
• Tuition & Fees Deduction 
• Student Loan Interest Deduction 
• Using Roth IRA Withdrawals for Education Expenses 
• Claiming both the Hope and Lifetime Learning Credits 
• View the education credits rate table
• Prepare for College - Know deductible college expenses
• Scholarships, Grants & Your Taxes 
• Out-of-State Tuition & Your Tax Return 
• Deduction on MBA Degree - WSJ Article
• MBA Court Case - Allemeir v. Commissioner

IRS Education-Related Forms & Publications  

• Taxable Income for Students
• Form 8863 - Education Credits (Hope and Lifetime Learning Credits)  
• Publication 970 - Tax Benefits for Education
• Publication 929 - Tax Rules for Children and Dependents
• Tax Topic 605 - Education Credits 
• Tax Topic 513 - Educational Expenses
• Tax Topic 456 - Student Loan Interest Deduction
• Form 1098-T - Tuition Payments Statement  
• Form 1099-Q - Payments from Qualified Education Programs (Under Sections 529 and 530) (Info Copy Only)   
• Form 5305-E - Education Individual Retirement Trust Account  
• Form 5305-EA - Education Individual Retirement Custodial Account
• What Records Should I Keep?
• Frequently Asked Questions and Answers from the IRS