I don’t get any financial aid and I pay my tuition completely out of pocket. Is it true that I can get that money back in the form of a tax credit at the end of the year? How does that work exactly? Does anyone have any experience in doing something like this?
I plan on filing my taxes with Turbo Tax so does anyone know if there is a section on there where you can state how much you paid for education so that you can get it back.
There are two tax credits available (you can get one of the two in one year, not both). See publication 970. Yes, turbo tax will guide you through the section for the credit. You must be claiming yourself, not a dependent on someone else’s taxes (if your parents claim you, the credit is theirs). You will not get it all back (unless you only pay $2000). For the AOTC, you’ll get the first $2000 of qualified expenses as a credit, and then 25% of the next $2000 in qualified expenses, so up to $2500 credit total.
Up to a certain amount, yes. Here is what Turbo Tax says since you are using it
If you qualify, there are a number of education tax incentives, including two different tax credits. The Turbo Tax interview process should alert you to these credits and make the proper entries on your tax return, if you qualify. For more immediate information, see IRS publication 970:
Do you provide over half of your own support through earned income?
^^^ the first three words of post #3 are very important -
IF YOU QUALIFY
Lots of students actually don’t qualify, particularly those who are taking longer than 4 years (and have taken credits before), those not enrolled at least half time towards a degree program, or those convicted of federal or state felony for possessing or distributing a controlled substance.
Also there are income limits that might apply.