Tax Incentives & Credits

What Are Tax Incentives

Tax incentives can be one way to help reduce the costs of your college education. There are different tax credits and deductions that specifically correlate with college education expenses.

The Hope Tax Credit

The Hope Tax Credit is an educational related tax credit which can be obtained by parents of a dependent college student who is in his or her first two years of study, has not been convicted of a felony, and is a full time college student. The Hope Tax Credit can be awarded in amounts up to $1,500 per qualified dependent student (applies to United States of America only).

Tuition And Fees Deduction

If you or a dependent student have accrued tuition and fee expenses required by the enrollment processes of an accredited college or university, then you are qualified to reduce your taxable income by up to $4,000 (applies to United States of America only).

Student Loans Interest Deduction

If you took out student loans for college, then you may be eligible to deduct a portion of your student loan interest on your taxes (applies to United States of America only).

Katrina Emergency Tax Relief Act of 2005

The Katrina Emergency Tax Relief Act of 2005 applies only to individuals who were affected by hurricane Katrina. This tax relief act states that college students may be eligible to claim an education credit, a student loan interest deduction, and a tuition and fees deduction.