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Education Tax Benefit Highlights

The IRS tax code provides a variety of tax incentives for families who are paying higher education costs or are repaying student loans.
  • You may be able to claim either the American Opportunity Credit or Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family (i.e., you, your spouse, or an eligible dependent) who are enrolled in eligible educational institutions. Different rules apply to each credit, and you may not claim both credits for the same student for the same year.

  • Or, you may be able to claim a tuition deduction of up to $4,000 for qualified education expenses paid during the year for yourself, your spouse, or your dependent. The qualified expenses must be for higher education. You may also be able to claim a deduction for student loan interest paid during the year.

In order to help you determine your eligibility for an education credit or tuition deduction, Baylor provides a Form 1098-T for each calendar year that tuition and fees or scholarships and grants are posted to your student account. Students may access their 1098-T through BearWeb. Click here for additional information and frequently asked questions about the Form 1098-T.


The following information is not provided as legal or tax advice. Individuals should refer to the most recent IRS Publication 970, Tax Benefits for Higher Education [PDF] [HTML], consult with a qualified tax professional, and/or contact the IRS Taxpayer Assistance line at 1-800-829-1040 with regards to any credit or deduction claimed on a personal tax return.