How do federal tax credits work? Tax credits directly subtract money from the federal income taxes that you owe, meaning each ...

The student, someone claiming the student as a dependent, or a spouse making qualifying education payments can claim the AOTC on their tax return. While the credit won’t cover room and board ...

Enter the American opportunity tax credit. This tax credit, which is designated for taxpayers who pay qualified tuition and related expenses, can reduce taxable income and even create a tax refund.

Rising higher education costs are one of the biggest concerns of parents and students. If it concerns you as well, there is a way you can reduce some of that cost using the 2024 education tax credits.