Tax Incentives for Education
The tax code provides a variety of tax incentives for families who are saving for, or already paying, higher education costs or are repaying student loans. Information on the various tax credits available can be found in IRS Publication 970. The most current version of the form can be found at IRS.gov.
Qualified Educational Expenses
For tax purposes, qualified education expenses are academically related fees paid to attend your campus and include only out of pocket expenses. Qualified education expenses for tax year 2014 are tuition, all mandatory student fees, and all course fees and lab fees. Charges related to room, board, activity fees, books, equipment, insurance or other personal living expenses are not allowed. The University of Colorado reports these amounts to students each year in the form 1098T.
The University of Colorado is not qualified to provide legal and/or tax advice. The information provided may or may not reflect recent revisions in IRS regulations. For tax advice on your specific situation, contact a tax professional. For additional information regarding the education tax credits you can call the IRS at 1-800-829-1040. You can also refer to IRS Form 8863 and the instructions that go with it for more information regarding how to calculate and claim the education tax credit and the loan interest deduction.