College-Related Federal Tax Provisions

Carroll students and families may be eligible for selected education-related tax provisions of the Federal Taxpayer Relief Act of 1997, including:

  • American Opportunity Credit provides a maximum $2,500 per year tax credit (non-refundable) for each eligible student for up to four years and up to $1,000 of the credit can be refunded if your credit is more than you owe in taxes. Qualifying expenses include tuition, fees and required course materials.
  • Student Loan Interest Deduction provides a non-refundable deduction (not credit) of interest on qualified education loans used to finance qualified education expenses. The maximum deduction each taxpayer is permitted to take is $2,500.
  • Lifetime Learning Tax Credit provides up to $2,000 per tax return, (not per student). Unlike the American Opportunity Credit, this is non-refundable.

Note: Be advised that there are numerous eligibility requirements and other specifics contained in the tax provisions. Contact your tax advisor before making decisions.