En esta noticia
In the United States, the Internal Revenue Service (IRS) offers a wide variety of tax credits and deductions so that American taxpayers can recover part of the money from their taxes.
For those who are in an academic setting, there are two types of benefits be claimed depending on the type of education being received. Only one of them is refundable.
What is the American Opportunity Tax Credit program, and what are its amounts?
The American Opportunity Tax Credit allows up to 2,500 dollars per student to be claimed. It is intended for anyone in the first four years of higher education.
It covers tuition, mandatory fees, and study materials that are necessary for the course. Only 1,000 dollars of the credit can be refunded, even if the taxpayer owes no taxes.
What is it and what are the amounts?
The Lifetime Learning Credit is a credit that allows up to 2,000 dollars per tax return to be claimed.
It can be used for undergraduate studies, graduate studies, professional courses, or job training.
There is no limit on the number of years it can be claimed, and it is not a refundable credit: its purpose is to reduce the tax burden.
How do you apply for an education credit in the United States?
To be able to claim either of these credits, the applicant must:
- Have incurred qualifying education expenses during the relevant tax year.
- Be enrolled in an eligible educational institution.
- Obtain Form 8863 when filing the Federal Tax Return.
- Keep receipts, tuition statements, and other documents that support the claimed expenses.