As summertime begins, many families are grappling with saving for a student beginning or continuing college come the fall. College education, whether for a child, yourself, or a spouse is a major investment. Knowing if your college-age child is still a dependent, what scholarships are taxable, and which tax credits are available is confusing.
Here's some guidance:
There are two federal tax credits available to help individuals offset the costs of higher education for themselves or their dependents. They are the American Opportunity Credit and the Life Time Learning Credit.