Educational Tax Credits
Educational Tax Credits
Students and their families may be able to save thousands of dollars due to special federal and state tax credits designed to help offset the cost of a college education. You should seek the advice of a tax professional and provide him or her with your IRS 1098-T, Tuition Statement. RCC sends this statement by February 1 of each tax year to all students who paid qualified tuition and fees in the prior year. Students may access and print their 1098-T via RCC's WebAdvisor.
Federal American Opportunity Tax Credit
The Federal American Opportunity Tax Credit provides up to $2,500 per student for qualified tuition and related expenses. The amount comes directly off the taxes owed to the IRS and may be partly refundable. According to Congressman Chuck Schumer, half of the eligible middle-class families in New York State overlook claiming the credit.
Read more about the American Opportunity Tax Credit at the following links:
- IRS Publication 970, Education Credits
- IRS Form 8863, Educational Tax Credits
- IRS Frequently Asked Questions
New York State College Tuition Tax Credit and Itemized Deduction
New York State allows you to take either a tax credit or an itemized tax deduction for allowable college tuition expenses on your state income taxes. The expenses must be for undergraduate study, paid by you as a taxpayer, on behalf of yourself, your spouse, or your dependents, to enroll or attend qualifying in- or out-of-state institutions of higher education.
The College Tuition Tax Credit is a tax credit allowed for qualified college tuition expenses paid for an eligible student. The credit is available to full-year New York State residents only, and is limited to $400 per eligible student.
The College Tuition Itemized Deduction may provide a greater tax savings. It is equal to the amount of your paid qualified college tuition expenses, up to a maximum deduction of $10,000 for each eligible student.
Qualifying college tuition expenses are defined as tuition payments net of scholarships and grant aid. New York State does not count fees, books, supplies, equipment, room and board, transportation, or personal expenses as qualified expenses.
Institutions of higher education include business, trade, technical or other occupational schools, recognized and approved by the Regents of the University of the State of New York, or a nationally recognized accrediting agency accepted by the Regents, which provides a course of study leading to the granting of a post-secondary degree, certificate or diploma.
For more information on the New York state tax credit, consult your tax professional or visit: