Going to college can be a stressful time for students and parents. The IRS offers these tips about education tax benefits that can help offset some college costs and maybe relieve some of that stress.

• American Opportunity Tax Credit.  This credit can be up to $2,500 per eligible student. The AOTC is available for the first four years of post secondary education. Forty percent of the credit is refundable. That means that you may be able to receive up to $1,000 of the credit as a refund, even if you don’t owe any taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment. A recent law extended the AOTC through the end of Dec. 2017.
• Lifetime Learning Credit.  With the LLC, you may be able to claim up to $2,000 for qualified education expenses on your federal tax return. There is no limit on the number of years you can claim this credit for an eligible student.

You can claim only one type of education credit per student on your federal tax return each year. If you pay college expenses for more than one student in the same year, you can claim credits on a per-student, per-year basis. For example, you can claim the AOTC for one student and the LLC for the other student.

You can use the IRS’s Interactive Tax Assistant tool to help determine if you’re eligible for these credits. The tool is available at IRS.gov.

• Student loan interest deduction.  Other than home mortgage interest, you generally can’t deduct the interest you pay. However, you may be able to deduct interest you pay on a qualified student loan. The deduction can reduce your taxable income by up to $2,500. You don’t need to itemize deductions to claim it.

These education benefits are subject to income limitations and may be reduced or eliminated depending on your income.

For more information, visit the Tax Benefits for Education Information Center at IRS.gov. Also, check Publication 970, Tax Benefits for Education. The booklet’s also available at IRS.gov or by calling800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Tax Benefits for Education Information Center
• Am I Eligible to Claim an Education Credit? – Interactive Tax Assistant tool
• Publication 970, Tax Benefits for Education

IRS YouTube Videos:

• Education Tax Credits and Deductions – English | Spanish | ASL

IRS Podcasts:

• Education Tax Credits and Deductions – English | Spanish

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WASHINGTON — The Internal Revenue Service is postponing the furlough day scheduled for Friday, Aug. 30, due to its successful ongoing efforts to cut costs. In early September, the IRS will reevaluate the need for an additional furlough day before the federal fiscal year ends on Sept. 30.

As a result, IRS offices will be open as usual. This means that all toll-free services, including theTaxpayer Advocate Service, will follow their regular Friday schedule, as will many of the agency’s taxpayer assistance centers (TAC) nationwide. However, because help may be limited or unavailable at some locations, the IRS highly recommends taxpayers check IRS.gov for office hours and services offered at the location they plan to visit before making the trip on Aug. 30.

Taxpayers can often get the tax information they need or resolve a tax problem without having to call or visit an IRS office. A wide variety of web-based online tools and phone-based automated services are available including Where’s My Refund?, the Online Payment Agreement, Withholding Calculator, Order A Transcript, EITC Assistant, Interactive Tax Assistant, Tele-Tax, the Online Look-up Tool for those needing to repay the first-time homebuyer credit and the online preparer tax identification number PTIN system for tax professionals. Visit online tools on IRS.gov to learn more about these tools.

So far, the IRS has taken three furlough days on May 24, June 14 and July 5, due to the budget situation including the sequester. Due to vigorous ongoing efforts by IRS employees to cut costs, the agency was able to cancel the scheduled July 22 furlough and is now able to postpone the furlough originally scheduled for Aug. 30.