how can tax benefits help me?
They help you by getting you back some of the money you spend on tuition or loan interest or they can maximize your college savings.
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what is the most I can claim as a credit?
The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of school.
how many of these types of credits are there?
There are two tax credits that help offset the costs of college by reducing the amount of your income tax.
Do you normally file a tax return?
yes, but not every year
Even if you normally wouldn’t file a tax return because of your income level, you should still do it, so you don't miss out on tax credits.
what is the other tax credit besides the one you already told me about?
There is also the Lifetime Learning Credit which allows you to claim up to $2,000 per student per year.
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are there any of those prepay programs that gives us tax benefits?
We have the QTP/529 plan, it is established by a state or school so that you can either prepay or save up to pay education-related expenses. Once you are in college and you withdraw money from your account to pay your education expenses, the money you withdraw will not be taxed.
