Can I Claim a Tax Credit for Going Back to School?

Yes — adults returning to school have two federal tax credits available. The American Opportunity Tax Credit (AOTC) is worth up to $2,500 per year for the first four years of a degree program, and 40% is refundable. The Lifetime Learning Credit (LLC) provides up to $2,000 per return for any post-secondary education, including graduate school and job skills courses — with no four-year limit. You can only use one credit per student per year. You also cannot use the same expenses for both a credit and a tax-free scholarship or employer tuition assistance. For workers taking continuing education courses, the LLC is especially useful.