IRS Publication 970 is a document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students and families saving or paying for college. It explains the tax treatment for the most common forms of college funding, such as scholarships, fellowships and grants, and tuition reductions.
Publication 970 outlines two tax credits: the American Opportunity Tax Credit and the Lifetime Learning Credit. In addition, IRS Publication 970 outlines 9 tax benefits that students and their families can claim in order to reduce the income tax they owe.
