The IRS allows qualifying education expenses to be applied to one of the following education benefits:
To enter your education expenses and qualifications:
- From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
- Click Education to expand the category and then click All education topics
- Click Yes
- The program will proceed with the interview questions for you to enter or review the appropriate information. If the student received a Form 1098-T, click Yes when you get to the screen titled Student Information - Form 1098-T to enter that information.
TaxACT will generally determine which education benefit is most advantageous for you based on the data entered on your return (such as income, filing status, amount of qualified expenses, etc).
You can review or modify the tax treatment of the education expenses to see how the refund or amount owed may change between the American opportunity credit, lifetime learning credit, or tuition and fees deduction.
- Click on the Federal Q&A tab
- Click Education to expand the category and then click Education credit/deduction summary
- Select Click here to change the selected education benefit
Once you have reviewed how each of the education credits or deduction affects your return, you may want to select Auto again to return to the education benefit automatically selected by TaxACT.
See IRS Publication 970 Tax Benefits for Education for more information.