If you’re looking for last-minute ways to lower your 2025 tax bill, consider prepaying some education costs. Taxpayers may be able to claim an American Opportunity Tax Credit (AOTC) of up to $2,500 per student for expenses paid in 2025, as long as classes begin by March 31, 2026. Costs related to tuition, course materials and certain equipment for coursework at a college, university or trade school generally qualify. You, your spouse or your dependent must be enrolled at least half-time in a degree or certificate program. Income limits and other restrictions apply. But if you don’t qualify for the AOTC, you might be eligible for the $2,000 Lifetime Learning Credit. To learn more, contact us.
Our Blog 