Back To School Calls For an Education Review

As schools get back in session, it’s a good time to check the education tax breaks for which you might qualify. First, there’s the “American Opportunity Tax Credit” for a percentage of qualified expenses paid during the first four years of higher education. Second, the “Lifetime Learning Credit” allows a deduction for a percentage of qualified expenses paid for any year the American Opportunity Credit isn’t claimed, and it even applies to job-related classes. Third, you may quality for a deduction for interest paid on student loans. Fourth, education savings accounts allow annual nondeductible contributions for children under 18, with tax-free withdrawals for qualifying education expenses.