Education Benefits for Tax Year 2011

Our tax system offers a number of tax breaks to encourage individuals to obtain higher education.

They include:

• Education credits, which reduce your tax bill or can increase your refund dollar for dollar.
• Education deductions, which lower your taxable income, and thereby reduce your taxes.

Credits available for 2011 include:

• American Opportunity Credit (replaces the Hope Credit effective 2009) 
• Lifetime Learning Credit

For more information go to Education Credits Available for 2011 

Education deductions for 2011 include:

• Tuition and Fees Deduction
• Student Loan Interest Deduction 

These tax breaks have different qualifications and benefits.

So, how do you decide which is best for you?

Don’t worry about complicated calculations. TurboTax figures out the best alternative for you.