IRS offers education tax credits as students return to school

SOUTHERN CALIFORNIA – If taxpayers, their spouses or dependents are heading off to college in the fall, some of their costs may save them money at tax time. The taxpayer may be able to claim a tax credit on their federal tax return. Here are some key IRS tips that they should know about education tax credits:

American Opportunity Tax Credit

The AOTC is worth up to $2,500 per year for an eligible student. A taxpayer may claim this credit only for the first four years of higher education. Forty percent of the AOTC is refundable. That means if they are eligible, they can get up to $1,000 of the c...