College and Students

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The American Opportunity Credit pays you back, in the form of a credit, for 100% of your first $2,000 of qualified education expenses for yourself, your spouse, or your dependents paid in 2016. It also pays you back 25% of the next $2,000 you spend on higher education, for a total credit of $2,500 per student, per year.

American Opportunity Credit

To claim the American Opportunity Credit, the student must be in the first four academic years of postsecondary education at an eligible school. It doesn't matter how many calendar years the student has been in school, as long as he or she is in still the freshman, sophomore, junior, or senior year. The student must also be enrolled at least half-time in a program leading to a recognized credential, such as a degree, and cannot have had a felony conviction for possessing or distributing a controlled substance. You can only take this credit for a student for four years.

You may qualify to take the American Opportunity Credit regardless of the amount of tax you owe. Up to $1,000 of this credit is refundable. For example, say you had no income tax withheld and you owe no taxes. You could still get up to $1,000 back for the American Opportunity Credit if you meet the requirements. TaxAct calculates the credit, including any refundable portion, for you.

If you don't qualify because, for example you are not working on a degree or other credential, or you don't meet the half-time requirement, you may be able to take the Lifetime Learning Credit. This credit gives you 20% back of up to $10,000 in qualified expenses.

Lifetime Learning Credit

The maximum Lifetime Learning Credit you can take is $2,000, regardless of how many students are on your return.

You cannot claim the American Opportunity Credit and the Lifetime Learning Credit for the same student, in the same year.

TaxAct calculates your American Opportunity Credit and the Lifetime Learning Credit on Form 8863, Education Credits.


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Upcoming Tax Dates

February 10 — Social security, Medicare, and withheld income tax
File Form 941 for the fourth quarter of 2017. This due date applies only if you deposited the tax for the quarter timely, properly, and in full.

February 10 — Certain small employers
File Form 944 to report social security and Medicare taxes and withheld income tax for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

February 10 — Farm employers
File Form 943 to report social security and Medicare taxes and withheld income tax for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

February 10 — Federal unemployment tax
File Form 940 for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

February 10 — Employees who work for tips
If you received $20 or more in tips during January, report them to your employer Details

February 15 — All businesses
Give annual information statements to recipients of certain payments you made during 2017 Details

February 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in January.

February 15 — All employers
Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2017, but did not give you Form W4 to continue the exemption this year.

February 15 — Individuals
If you claimed exemption from income tax withholding last year on the Form W-4, you must file a new Form W-04 by this date to continue your exemption for another year Details

February 19 — Everyone
Federal Holiday (Washington's Birthday) Details

February 28 — All businesses
File information returns (for example, Forms 1099) for certain payments you made during 2017.

February 28 — Payers of gambling winnings.
File Form 1096 along with Copy A of all the Forms W2G you issued for 2017. If you file Forms W2G electronically, your due date for filing them with the IRS will be extended to 03-31. The due date for giving the recipient these forms remains 01-31.

February 28 — All employers
File Form W3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W2 you issued for 2017. If you file Forms W2 electronically, your due date for filing them with the SSA will be extended to 03-31. The due date for giving the recipient these forms remains 01-31.

February 28 — Large food and beverage establishment employers
File Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Use Form 8027T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically, your due date for filing them with the IRS will be extended to 03-31.

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