- Tax credits for college allow you to deduct a portion of the costs associated with tuition and course related fees such as school books from your federal income tax return. Two primary college tax credits are available for the 2010 tax year: the American opportunity credit and the lifetime learning credit. The American opportunity credit is good for up to four years, and lets you deduct up to $2,500 for college tuition and course fees. The lifetime learning credit has no claim limit in years, and it allows you to deduct up to $2,000 for college tuition, school books and related required course fees.
- College tax deductions reduce the amount of taxable income you have and can create a tax refund payment. For the 2010 tax year, you can deduct up to $4,000 for college tuition, school books and related required course fees, as long as the student is a dependent of yours, yourself or your spouse and your gross adjusted income is less than $80,000, or $160,000 if you're married filing jointly.
- The available tax credits and tax deductions allow individuals and families to deduct specific costs associated with attending a higher education institute. School books can only be deducted if they're required for the course curriculum at an approved eligible college or post-secondary school.
- College tax credits and deductions allow you to deduct a portion of the costs of school tuition and related educational fees. Any materials that are required by the elected course of studies -- including school books and computers -- can be applied to the tax credit or deduction as well.
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