Education Tax Credits
As a community college student, you are eligible to receive education tax credits that can help reduce the expense of your education.
The credits are based on education expenses paid for you, your spouse, or your dependents. The credits are allowed for qualified education expenses paid in a year for an academic period that begins in the same year or during the first three months of the following year.
Obtaining the Tax Credits
To apply for the credit, the taxpayer must report the amount of qualified tuition and fees paid as well as the amount of certain scholarships, grants, and untaxed income used to pay the tuition and fees. Schools must send this information to taxpayers and to the IRS by January 31, in the form of a 1098-T statement. Taxpayers will use this information and their own records about tuition and fees paid when they fill out the IRS Form 8863 to claim the tax credit. The statement sent by the school will also include contact information for someone at the school who can answer questions about the information on the form. A taxpayer may wish to talk to a tax advisor for help in calculating the amount of its credit.
Generally, the deduction is allowed for qualified tuition and expenses paid in a year in connection with enrollment at an institution of higher education during the same year or for or in the first three months of the following year.