With kids now back in college, the fact of higher educational costs is impossible to ignore. As you or your child navigate campus, you are now in position to start navigating the possible tax implications of your new-found college expense. Outlined here are three of the more popular ways to reduce your taxes in 2025 as a result of this educational expense burden.

Who Qualifies:

Typically you, your spouse, or a dependent that can be claimed as an exemption on your individual tax return

Qualified Expenses:

Tuition and fees, course related books, supplies and equipment

Common Tax Benefits:

1. American Opportunity Credit

• Amount of Credit: $2,500 per eligible student at an eligible institution (100% of initial $2,000 and 25% of the next $2,000)

• Frequency: Available for the first fou

See Full Page