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Education Tax Benefits

Education Tax Benefits

U.S. residents may be eligible to claim a tax credit on their federal tax return for qualified educational expenses. The Taxpayer Relief Act of 1997 and the American Recovery and Reinvestment Act provided educational tax credits for eligible taxpayers. These benefits, called the American Opportunity Credit and the Lifetime Learning Credit, allow eligible taxpayers to reduce their federal income tax based upon qualified tuition and fees paid. 

Alternatively, U.S. residents may be able to deduct qualified higher education expenses paid during the year for themselves, their spouses or dependents. The tuition and fees deduction can reduce the amount of income subject to taxation by up to $4,000.  

Determinations as to who qualifies for these tax credits and/or deductions should be made in consultation with a personal tax advisor or the Internal Revenue Service. The University of California cannot give tax advice or make a determination as to who qualifies for these tax incentives.