More Tax Breaks for Your Family
At Ciuni & Panichi, Inc., we are experts at finding all the credits you and your family deserve.
Tax credits can be especially valuable because they reduce taxes dollar-for-dollar, where deductions reduce only the amount of income that’s taxed.
Here are two credits available for higher education expenses:
- The American Opportunity credit – up to $2,500 (per year, per student) for qualifying expenses for the first four years of postsecondary education.
- The Lifetime Learning credit – up to $2,000 per tax return for postsecondary education expenses, even beyond the first four years.
Be careful because income-based phase-outs apply to these credits. If your income is too high to qualify, you still might be eligible to deduct up to $4,000 of qualified higher education tuition and fees. The deduction is limited to $2,000 for taxpayers with incomes exceeding certain limits and is unavailable to taxpayers with higher incomes.
If you don’t qualify for tax breaks for your child’s higher education expenses because your income is too high, your child might. Many rules and limits apply to the credits and deduction, however.
Call or email Jim Komos at 216.831.7171 or firstname.lastname@example.org and he can help you learn which tax breaks your family might be eligible for on your tax returns and which will provide you the greatest tax savings.
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