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Tax Benefits for Education

There are a variety of tax credits, deductions and savings plans available to taxpayers to assist with the expense of higher education.

These are not scholarships that you apply for and receive prior to attending classes. These tax benefits are based on payments made for tuition and other related educational costs. They are available to individuals and families who file a tax return and owe taxes.

Some of the more common benefits are listed below.  For details on these and more, please refer to the Internal Revenue Service website. A clear and concise explanation of many of these is also available via a link on the National Association of Student Financial Aid Administrators' website NASFAA. Tax credits are subtracted from the tax an individual or family owes; tax deductions reduce the taxable income.

  • American Opportunity Credit
  • Lifetime Learning Tax Credit
  • Education IRAs
  • Using IRA withdrawals to pay for Higher Education Expenses
  • Tuition and Fees Deduction
  • Student Loan Interest Deduction
  • Qualified State Tuition Programs
  • Exclusion for Employer-Provided Education Assistance
  • Information on tuition tax credits, deductions, and the 1098T form can be found on the Bursar Office website, http://www4.uwm.edu/bfs/depts/bursar/tax-info.cfm. Information on estimated costs not included on a 1098T form may be found in the Cost of Attendance link.

If you have further questions concerning the tax credits or any of the other programs on the IRS website, you may want to contact the Internal Revenue Service directly and/or consult with a tax professional.