Tax Tips: Review the education credits before filing a federal tax return
There are two tax credits designed to help taxpayers reduce education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit.
Eligibility requirements
For both tax credits, to be eligible:
• The taxpayer, their spouse or their dependents must have taken post-high school coursework in tax year 2024.
• The student must have a Form 1098-T, Tuition Statement, from an eligible educational institution. There are exceptions for some students.
Things taxpayers should know about the education tax credits
The American Opportunity Tax Credit is:
• Worth a maximum benefit of up to $2,500 per eligible student.
• Available only for the first four years at an eligible college or vocational school.
• For students pursuing a degree or other recognized education credential.
• Partially refundable. People could get up to $1,000 back.
The Lifetime Learning Credit is:
• Worth a maximum benefit of up to $2,000 per tax return, per year.
• Available for all years of postsecondary education and for courses to acquire or improve job skills.
• Available for an unlimited number of tax years.
Claiming the credits
To claim either credit, taxpayers must complete Form 8863, Education Credits, and file it with their federal tax return
... See MoreSee Less
Tax Tips: IRS reminder to U.S. taxpayers living, working abroad: File 2024 tax return by June 16
WASHINGTON – The Internal Revenue Service today reminded taxpayers living and working abroad that they have until Monday, June 16, 2025, to file their 2024 federal income tax return and pay any tax due. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship.
In general, on the regular due date of their return, a U.S. citizen or resident alien residing overseas or in the military on duty outside the U.S. is allowed a two-month extension to file without needing to ask for it. If they use a calendar year to file their return, as virtually all individual taxpayers do, the regular due date of their 2024 return is April 15, 2025. The automatic extended due date is June 16, 2025, pushed back from the usual June 15 because that date falls on a Sunday this year.
Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of 7% per year, compounded daily, after April 15, 2025.
Who Qualifies?
A taxpayer qualifies for the June 16 extension if they are a U.S. citizen or resident alien and, on the regular due date of their return:
• They are living outside the United States and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or
• They are in military or naval service on duty outside the United States and Puerto Rico.
Qualifying taxpayers should attach a statement to the return indicating which of these two situations applies.
... See MoreSee Less
Tax Tips: Taxpayers can request a copy of previous tax returns
Taxpayers can access their personal tax records in several ways. Those records are useful and can help with future tax filing. People should generally keep copies of their federal tax returns and any related documents for at least three years after they file.
If a taxpayer wants a copy of their previous tax returns or a transcript of their tax account, they can ask their tax software provider or tax preparer, or they can request their records directly from the IRS.
Get tax records from IRS Online Account
The fastest and easiest way for taxpayers to view their tax records is by logging on to their IRS Online Account. There, they can:
• View, print or download their tax transcripts.
• Find out how much they owe.
• Look at their payment history.
• See their prior year adjusted gross income (AGI).
• View other tax records.
If taxpayers don’t have an IRS Online Account and can’t create one, they still have a few options to get the information they need.
Ask the software provider or tax preparer
Individuals that used a software provider or tax preparer to file should contact them for a copy of their tax return.
Request a transcript from the IRS
If a taxpayer can't get a copy of a prior year federal tax return, they can order a tax transcript from the IRS. The tax transcript shows their basic filing information as well as any changes made after the taxpayer filed. These are free and available for the for up to three years after the IRS has processed the tax return.
People can get their tax transcripts by mail or by phone.
• By mail: Taxpayers can complete and send either Form 4506-T or Form 4506-T-EZ to the IRS to get one by mail. They use Form 4506-T to request other tax records: tax account transcript, record of account, wage and income and verification of non-filing.
• By phone: Taxpayers can call 800-908-9946 to request a transcript by phone. Transcripts requested by phone are mailed directly to the taxpayer.
To protect taxpayers' identities, tax transcripts partially hide personally identifiable information such as names, addresses and Social Security numbers. All financial entries, including the filer's adjusted gross income, are visible.
... See MoreSee Less
