If you were counting on education tax credits to help defray the cost of college or job training courses, watch out. In a recent budget proposal, Republican leaders in Congress want to eliminate two key tax relief programs for students.
The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) provide tax relief—up to $2,500 and $2,000 a year, respectively—for tuition and mandatory fees for millions of students each year. Republicans in the U.S. House of Representatives have proposed eliminating both tax credits, which they claim would save the government $85 billion over 10 years.
With U.S. student loan debt now topping $2 trillion, any financial support is a boon for students. Unfortunately, millions of eligible taxpayers fail to take advantage of the credits. According to the IRS, an estimated $6.3 billion went unclaimed in the 2022 tax season alone, thanks to a combination of students underclaiming or not claiming them at all.
Read more at Fortune.
