You or your parents may be eligible for up to $2,500 through the American Opportunity Credit or up to $2,000 through the Lifetime Learning Credit. While these tax credits aren’t financial aid grants, they’re intended to help you pay for your education expenses.
If the modified adjusted gross income is equal to or less than $66,000 (single filer) or equal to or less than $132,000 (married and filing a joint return), you may qualify for these credits.
Student Loan Interest Deduction
If you’ve taken out loans to pay the cost of attending an eligible educational institution for yourself, your spouse, or a dependent child, you may be able to deduct interest paid on these loans from your taxable income.
The deduction is available only for interest payments made during the first 60 months in which interest payments are required on the loan. For more information, visit the IRS website.