I have a question regarding education credit. If my children received student loans and scholarships, can I claim tax credit for education costs?
You can’t claim education credit for any education expense you or your dependent didn’t pay for. Student loans are considered paid by the person who’s legally liable for the loan — usually the student.
However, you can claim the education credit for expenses paid by your dependent students for these:
- American Opportunity Credit
- Lifetime Learning Credit
Since tax-free scholarships don’t have to be repaid, amounts paid for by scholarships aren’t considered paid by you or the student; therefore tax credit for education cannot be claimed.
Are you eligible for tax credits when pursuing higher education? Learn more about these credits and get tax answers at H&R Block.
What are the qualifications for the additional Earned Income Credit (EIC) and additional child tax credit? Learn more from the tax experts at H&R Block.
Learn more about claiming premium tax credits with advice from the tax experts at H&R Block.
Learn whether you can claim the earned income tax credit if you are separated from your spouse with advice from the tax experts at H&R Block.