February 1, 2019
As a community college student, you are eligible to receive education tax credits that can reduce the expense of your education. Please refer to the IRS links that discuss Education Credits and Tax Benefits for Education.
Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education. For example:
- A tax credit reduces the amount of income tax you may have to pay.
- A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay.
- Certain savings plans allow the accumulated earnings to grow tax-free until money is taken out (known as a distribution), or allow the distribution to be tax-free, or both.
- An exclusion from income means that you won't have to pay income tax on the benefit you're receiving, but you also won't be able to use that same tax-free benefit for a deduction or credit.
The credits are based on education expenses paid for you, your spouse, or your dependents. For more information, please click here.
Thank you for your time, and please let us know if we can assist you in any way.
