| Tax Credits/Deductions Quick Reference | |
| Tax Credits and Deductions | |
| New York State Tuition Tax Credit/Deduction | Through the New York State Tuition Tax Credit/Deduction resident taxpayers may claim a deduction or a refundable credit for allowable undergraduate tuition paid for themselves, their spouse, or their dependents enrolled in qualified institutions. |
| American Opportunity Credit (2011 & 2012 Tax Years) | The new American Opportunity Credit was extended to apply for tax years 2011 and 2012 by the Tax Relief and Job Creation Act of 2010. It provides a tax credit of up to $2,500 per student to offset qualified higher educational expenses available to more taxpayers, including those who owe no tax. The full $2,500 credit may be available to a taxpayer who pays $4,000 or more in qualified expenses for an eligible student. |
| Federal Lifetime Learning Tax Credit | The American Opportunity Tax Credit is allowed for expenses related to the first four years of college. However, higher education expenses beyond their first four years of college may still qualify for up to $2,500 Lifetime Learning Tax Credit per tax return for undergraduate, graduate/professional, or part-time post secondary study. |
| Federal Student Loan Interest Deduction | The Federal Student Loan Interest Deduction provides up to a $2,500 tax deduction for the interest paid during repayment on a qualified student education loan. |
| New York’s 529 College Savings Program | New York State residents may save for themselves, their children, grandchildren or friends. Withdrawals made by New York taxpayers are exempt from State and federal income tax when used for qualified higher education expenses. New York taxpayers, who are account owners, can also deduct up to $5,000 of contributions ($10,000 for a married couple filing jointly) on their state income tax return each year. Assets grow tax-deferred and withdrawals are exempt from federal income tax when used for qualified higher education expenses. |
| Education Savings Bonds | Generally, you must pay tax on the interest earned on U.S. savings bonds. If you do not include the interest income in the year it is earned, you must include it in you income in the in which you cash in the bonds. However, when you cash in certain savings bonds under an education savings bond program, you may be able to exclude the interest from income. |
