Tax Credits for US Citizens
The US Internal Revenue Service offers tax credits to students repaying their loans.
The US Internal Revenue Code provides for tax credits and deductions that can help reduce the federal tax burden for students and for those paying the costs of a student’s higher education, including graduate business school. However, the rules are complex and not everyone qualifies—plus, at least one tax credit program is geared towards undergraduates.
- The LIFETIME Learning Tax Credit applies to tuition and fees for undergraduate, graduate, and continuing education coursework to acquire or improve job skills. You may be able to claim a credit of up to $2,000 for qualified education expenses paid for all students enrolled in eligible educational institutions. There is no limit on the number of years the credit can be claimed for each student for which it is applied.
- When you enter repayment, you may be able to deduct eligible interest paid on your student loans, assuming you meet the income requirements.
Information on these and other possible tax credit programs are available through the Internal Revenue Service.