Tax Tip 2025-23: Review the education credits before filing a federal tax return

IRS Tax Tips April 3, 2025
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:  Tax Tip 2025-23 Review the education credits before filing a federal tax return There are two tax credits designed to help taxpayers reduce education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit. Eligibility requirements For both tax credits, to be eligible: The taxpayer, their spouse or their dependents must have taken post-high school coursework in tax year 2024. The student must have a Form 1098-T, Tuition Statement, from an eligible educational institution. There are exceptions for some students. Things taxpayers should know about the education tax credits The American Opportunity Tax Credit is: Worth a maximum benefit of up to $2,500 per eligible student. Available only for the first four years at an eligible college or vocational school. For students pursuing a degree or other recognized education credential. Partially refundable. People could get up to $1,000 back. The Lifetime Learning Credit is: Worth a maximum benefit of up to $2,000 per tax return, per year. Available for all years of postsecondary education and for courses to acquire or improve job skills. Available for an unlimited number of tax years. Claiming the credits To claim either credit, taxpayers must complete Form 8863, Education Credits, and file it with their federal tax return. More information Compare education credits Tax benefits for education: Information center Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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