4 tax breaks every U.S. college student should know about

  • If you attended undergraduate, graduate, and professional school this year, you may be eligible for a tax break.

  • The IRS offers tax deductions and tax credits for college students that either reduce taxable income or lower your tax bill.

  • The American Opportunity Credit allows students earning less than $80,000 to claim up to $2,500 for the first four years of college for tuition and fees, course-related books, supplies, and equipment.

If you attended undergraduate, graduate, and professional school this year, you may be eligible for a tax break.

Tax credits and tax deductions can help you pay less income tax, according to the IRS. Tax credits are subtracted directly from the amount you owe in taxes on a dollar-for-dollar basis, while tax deductions reduce your taxable income.

There are a few tax deductions and tax credits available for students that may help offset the cost of tuition of other school-related expenses.

You can use these credits and deductions for yourself, if you're currently a student, or for your spouse or a dependent child if they are the one in school. College students can only claim one tax credit a year, but parents supporting more than one child in college can claim tax credits on a per-student basis.

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