The IRS allows qualifying education expenses to be applied to one of the following education benefits:
To enter your education expenses and qualifications:
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.
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.