What Are Tuition Tax Credits and Tax Deductions?
School tax credits refund expenses made toward education up to a fixed figure. Tax deductions minimize the expense of education by making them itemized deductions. The qualifying criteria cover educational expenses such as tutoring, texts, and computers, and, in the states that have them so far, private school tuition. State legislation determines the amount of credit and what can be included in the deductions. It also states whether private school tuition qualifies. Education tax programs fall into one of two categories. The first is a personal use credit, which allows individual families to reduce their tax liability. The second category is a donation tax credit, which allows individuals and businesses to reduce their tax liability by contributing to organizations that disperse funds to families to help them pay for their children’s education.
School tax credits refund expenses made toward education up to a fixed figure. Tax deductions minimize the expense of education by making them itemized deductions. The qualifying criteria covers educational expenses such as tutoring, texts, and computers, and, in the states that have them so far, private school tuition. State legislation determines the amount of credit and what can be included in the deductions. It also states whether private school tuition qualifies.
