Are there any tax breaks for college tuition?

Yes, there are tax breaks for college tuition in the state of Virginia. The Virginia Tuition Assistance Grant (VTAG) provides financial assistance to eligible full-time undergraduate students attending eligible non-profit colleges and universities located in Virginia. To be eligible, the student must have a cumulative grade point average (GPA) of 2.50 or better at the end of the first academic year, be a resident of Virginia, and demonstrate financial need. Additionally, the American Opportunity Credit and the Lifetime Learning Credit may be available to Virginia taxpayers who paid tuition and fees for themselves or a qualifying dependent. The American Opportunity Credit offers a maximum credit of $2,500 per student per year and is available for the first four years of postsecondary education. The Lifetime Learning Credit provides up to $2,000 per year while enrolled in an eligible educational institution, regardless of how many years the student has been enrolled. In addition to credits, Virginia taxpayers may be able to deduct certain tuition and fees paid for higher education from the taxpayer’s federal adjusted gross income. If the tuition and fees deduction was used for an eligible student’s educational expenses, the taxpayer can deduct up to $4,000 from their federal adjusted gross income. Finally, Virginia taxpayers may be able to take advantage of the Virginia Education Savings Grant Program which provides matching grants to Virginia residents who invest in the Virginia 529 plan.

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Are there any tax breaks for college tuition?

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