Is College Tuition Tax Deductible?

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Going to college seems to get more expensive every year. Tuition, fees, room and board for an out-of-state student attending a four-year public institution cost $28,240 for the 2022-2023 school year (on average). About a decade ago, an in-state student would’ve paid an average of $15,180 (in 2016 dollars) for the same expenses. There’s not much you can do about rising college costs, but there are a few tax breaks you can use to help offset the cost of college. A financial advisor can help you optimize a tax strategy for your education needs and goals.

Tax credits for college students

There are two additional tax breaks that students in college (or their parents and guardians) might benefit from: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).