Can I Claim an Education Credit for My Child Attending College?
You may be able to claim an education credit for your child attending college if they meet the eligibility requirements for either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). These credits are designed to help offset the cost of higher education.
Eligibility Requirements
- Your child must be enrolled at or attending an eligible educational institution (postsecondary school).
- Your child must be a student for the academic period beginning in 2025 or the first 3 months of 2026.
- You must be able to claim your child as a dependent on your tax return.
- You cannot be claimed as a dependent on someone else’s tax return.
- Your filing status cannot be married filing separately.
Types of Education Credits
For 2025, there are two education credits available:
- American Opportunity Tax Credit (AOTC): Up to $2,500 per eligible student per year. Part of this credit is refundable, meaning you may receive a refund even if you owe no tax.
- Lifetime Learning Credit (LLC): Up to 20% of the first $10,000 of qualified education expenses paid during the year, for a maximum credit of $2,000 per tax year. This credit is nonrefundable.
Qualified Education Expenses
Qualified expenses include tuition and fees required for enrollment or attendance at an eligible educational institution. Expenses that do not qualify include:
- Room and board
- Books and supplies (unless required for a course)
- Transportation
- Personal expenses
Note: You cannot reduce qualified expenses by the amount of any scholarship that is excludable from gross income (tax-free), unless it is specifically designated for qualified tuition and related expenses.
How to Claim the Credit
To claim an education credit, you must file Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). The form requires information about the student, the educational institution, and the qualified expenses paid.
OLT (Online Taxes) software can guide you through adding Form 8863 to your return. Navigate to the Federal section, select Education Tax Credits, and follow the on-screen instructions to add or edit Form 1098-T, AOTC, or LLC.
Important Considerations
- The credits are based on adjusted qualified education expenses paid during the tax year.
- There may be phase-outs for taxpayers with higher modified adjusted gross incomes (MAGI).
- For detailed guidance, refer to Publication 970, Tax Benefits for Education.
Source:
Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
Publication 970, Tax Benefits for Education
Disclaimer: Always verify details with official IRS forms, instructions, and publications from the Federal or State Department of Revenue.