Education Tax Incentives
Federal Education Tax Incentives
The IRS can help you put some of the cost of medical school back in your pocket. Qualifying taxpayers can benefit from tax credits and tax deductions. Three pertinent programs are highlighted below. Choose the one that will benefit you the most, resulting in the lowest tax.
- Hope and Lifetime Learning Credit - is 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. If you claim a Hope Scholarship Credit for a particular student, none of that student's expenses for that year may be applied toward the Lifetime Learning Credit.
- Student Loan Interest Deduction - You may be able to deduct interest you paid on a qualified student loan. And, if your student loan was canceled, you may not have to include any amount in income. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions on Schedule A Form 1040.
For income qualifications and additional information regarding education tax incentives, visit:
State-Specific Education Tax Incentives
Check with your state to see if there are any state-specific tax incentives you may qualify for.
- Opportunity Maine - The Opportunity Maine Program provides a State income tax credit to defray annual student loan payments to graduates of Maine colleges who pay income taxes in Maine. The tax credit applies to all graduates who borrowed undergraduate student loans after January 1, 2008. The maximum annual credit is capped based on: the taxpayer's State tax liability, the annual amount of student loan repayment made in the tax year, or $5,500 (figure adjusted annually), whichever is lowest.
For additional information, visit: liveandworkinmaine.com/opportunity-maine/
*This material is provided for general information only. Please see your tax advisor for information on other tax-related educational benefits and for information regarding your specific situation.