With alarming spikes in tuition, college students and their parents are wondering if a higher education is obtainable only to the wealthy. However, there’s hope on the horizon. Uncle Sam is lending a hand with several tax breaks that could save families thousands.
Whether you’re a college student and claiming yourself this year, or you’re a parent who has a child in school, check out these tax breaks that are sure to pick up on some of the tuition tab:
The American Opportunity Credit is similar to 2009′s Hope Credit, but even better. The credit was created to offset the increasing costs of tuition, and it provides up to $2,500 per college student. It allows taxpayers to claim tuition and certain fees for higher education, but these expenses can only be claimed for the first four years of college. Parents can receive a credit of up to $7,500 if they claim three qualifying college students.