Student activity fees and course-related books, supplies, and equipment only count if they must be paid to the school for enrollment or attendance. Prepaid education expenses can also be used to calculate the credit if they’re paid for an academic period that begins in the first three months of the following year. However, in most cases, the credit is only available for undergraduate school.

More products from Intuit

Students who are dependents on their parents’ tax returns aren’t generally eligible to claim education credits. In this case, the student’s parents may be eligible to claim the education deductions and credits. Depending on your income, you can take a special deduction for the interest you paid during the year on qualified student loans.

Need More Time to Finish your 2024 Tax Return? File a Tax Extension & Delay Tax Day until October 2025.

If you’re a student paying for school, however, you might not qualify for the refundable credit–most students under 24 years of age generally don’t qualify. But you’re still eligible for the AOTC if you pay undergraduate tuition and are enrolled in a degree program at least half-time. The 1098-T tax form lists the total dollar amount paid by the student toward qualified tuition and related expenses (QTRE) in a single tax year. This form is designed to help students or those paying for a student’s education track these expenses for tax purposes. Tax deductions are not direct payments to you as tax credits are.

What is a 1098-T form used for?

• The Canada Workers Benefit is a credit aimed at supporting low-income workers, whether single or with a family.
• The Child Tax Credit (CTC) may be worth up to $2,000 for each qualifying child which can be claimed per qualifying dependent as long as you had earned income of at least $2,500.
• If the credit reduces your tax to zero, you may be eligible to receive a refund of up to $1,000.
• As a result, on your tax return Form 1040, you will have your adjusted gross income or AGI which includes these deductions or adjustments.

Students who paid tuition fees in 2024, whether for Canadian or international courses, can still claim the tuition tax credit, even though the education and textbook credits were eliminated in 2017. If you didn’t use credits from previous years, you can carry them forward. The Canada Workers Benefit is a credit aimed at supporting low-income workers, whether single or with a family. It’s also available to those qualifying for the Disability Tax Credit. The CWB helps workers keep more of their earnings and is a refundable credit, meaning you can receive it even if you don’t owe any taxes.

Do you get money back with a 1098-T form?

Or get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted. And if you want to file your own taxes, TurboTax will guide you step by step so you can feel confident they’ll be done right. No matter which way you file, we guarantee 100% accuracy and your maximum refund.Get started now by logging into TurboTax and file with confidence. However, the credit is phased-out if your income is above a certain amount. For married couples filing a joint return, the credit is gradually reduced if your modified adjusted gross income (MAGI) is $160,000 or more.

You can only claim a standardized or itemized deduction on your tax return. Income and age determines whether a person has to or should e-file a tax return more so than a job title or education status as a student. We spare you from reading over all the detailed tax factors that stipulate if you should or should not prepare and file a return. Start the free and easy FILEucator tool below, answer a few simple questions, and you got the answer. Again, keep in mind that even if you don’t have to file education or student tax credits you could apply on your taxes a tax return, you might want to file one as a young person or student, since you might get a much needed tax refund.

• If you have any questions about preparing and e-filing your Form 1040-NR we will assist you; contact one of our Taxperts here.
• It’s completely eliminated (reduced to $0) if your MAGI is $180,000 or more.
• In this case, the student’s parents may be eligible to claim the education deductions and credits.
• If you are a U.S. nonresident alien, you should FileIT Form 1040NR if you do not have dependents or children etc.
• If you plan to prepare and file your own tax return, start on eFile.com and the app will guide you through via simple tax questions.
• If you have generated income that is not listed on either of these pages, contact an eFile.com Taxpert to get answers to your questions regarding specific income and tax circumstances.

Lifetime Learning Credit (education)

You’ll be banned for two years if it’s determined that your ineligible claim was made with reckless or intentional disregard of the law. The ban will last for 10 years if your ineligible claim was due to fraud. Our team of tax experts will help you understand your taxes and make sure you get the most out of your return. Claiming unused federal tuition amounts is as simple as logging into your CRA My Account as previously noted.

For example, if your total annual income was $50,000 and you qualify for $15,000 in tax deductions, your taxable income would be reduced to $35,000. By reducing your taxable income, you would be taxed based on your filing status and personal tax bracket. In order to claim or qualify for most tax credits (except some retirement contributions) for the 2024 tax year, the payments or expenses have to occur during the tax year or no later than December 31.

Tax deductions and credits: what’s available to international students?

For parents and families with children (under 13) or legally-dependent adults unable to care for themselves, this credit can help defray the cost of day care and other costs. This credit can be up to 35% of $3,000 of expenses for the first dependent. If you worked from home in 2024 due to employer requirements, you could be eligible to claim home office expenses. This includes a portion of your rent, utilities, and internet costs, based on the space used for work. However, you must have paid these expenses yourself and have a signed Form T2200 from your employer.

Visit the IRS’s Information Center for tax benefits for education to learn about all the requirements. This deduction may benefit workers (including those who are self-employed) who itemize their deductions and paid for work-related education. If you have any concerns or questions about what’s reported on the 1098-T form, it’s best to contact your (or your child’s) academic institution to clarify any confusion or discrepancies. This tool will not translate FTB applications, such as MyFTB, or tax forms and other files that are not in HTML format. Some publications and tax form instructions are available in HTML format and can be translated. Visit our Forms and Publications search tool for a list of tax forms, instructions, and publications, and their available formats.