Taxpayers can claim one or two tax credits for expenses paid for post-secondary education.
A tax credit of up to $2,000 is available to parents or students for tuition and fees paid. This credit can be claimed only for two years and applies only to the first two years of college.
This credit is for tuition and fees paid for undergraduate, graduate and continuing education course work. A credit of up to $1,000 may be claimed each tax year.
A taxpayer may invest up to $500 per child until the child reaches age 18. Earnings accumulate tax-free and when withdrawn to pay for education expenses are tax-free.
We strongly recommend that you consult your tax advisor when contemplating using these tax savings.
For More Information visit the IRS website.