Tax Benefits

As a taxpayer who is paying for your education, you may qualify for certain tax credits and/or deductions. For reference, a tax credit reduces the amount of tax after tax is calculated, while a deduction reduces the amount of income subject to tax before the tax is determined.

Indiana Tech does not and cannot advise you on which credits or deductions you are eligible to claim. Tax filers needing assistance in determining which credit or deduction to claim should contact a tax professional or the IRS directly.

Student Loan Interest Deduction

Borrowers paying interest on eligible student loans may deduct up to $2,500 of the interest paid during the tax year. This includes both required and voluntary interest payments made on your student loans. You may be able to claim this deduction even if you do not itemize deductions on the IRS Form 1040 Schedule A.

You may not be eligible to claim this deduction if you and your spouse file married filing separately, or if you can be claimed as a dependent on someone else’s tax return.

Tuition and Fees Deduction

You may be able to deduct qualified educational expenses paid during the year for yourself, your spouse or your dependent. Qualified expenses include tuition, fees, room and board, books, equipment and/or transportation. You may be able to claim this deduction, even if you do not itemize your deductions on the IRS Form 1040 Schedule A. The Tuition and Fees Deduction can reduce the amount of your income subject to tax by up to $4,000.

You may not be eligible to claim this deduction if you and your spouse file married filing separately, or if you can be claimed as a dependent on someone else’s tax return.

For more information on these deductions, please visit the IRS Website on education deductions and credits.

American Opportunity Credit

Additional information on the American Opportunity Credit can be found on the IRS website.

Lifetime Learning Credit

Additional information on the Lifetime Learning Credit can be found on the IRS website.