Education Tax Benefit Programs

There are several tax tools available to help students and families meet the cost of higher education, including:

  • Tax credits – Hope and Lifetime Learning;
  • Above-the-line deduction for higher education expenses;
  • Deduction of student loan interest;
  • Tax-free withdrawals from education savings accounts (ESAs);
  • Tax-free withdrawals from state-sponsored and private tuition savings plans; and
  • Tax free, employer-provided tuition benefit.

Save your records of all education-related payments and financial aid for tax purposes. Institutions are required to provide form 1098T, Tuition Statement, to students (with the exception of Continuing Education students and nonresident alien students). Banks, institutions, and other lenders that collect student loan interest payments must issue annual information returns, form 1098E, Student Loan Interest Payments to Individuals, from whom they collect more than $600 in interest during the tax year.

For more information about these tax benefits: IRS Publication 970, Tax Benefits for Higher Education, and Publication 520, Scholarships and Fellowships, are available from the IRS website or by calling (800) TAX-FORM.

Texas Public University Tuition Rebate Program

You may qualify to receive $1,000 from your Texas public university if you earn a bachelor’s degree and meet the following criteria:

  • Enrolled in a Texas public institution of higher education in Fall 1997 or thereafter;
  • Resident of Texas and entitled to pay in-state tuition at all times while pursuing the degree;
  • Received a bachelor’s degree from a Texas public university; and
  • Attempted no more than 3 credits in excess of the minimum number of credits required to complete the degree in the catalog under which graduated. Hours attempted include transfer credits, course credits earned exclusively by examination, courses that are dropped after the official census date, and for-credit developmental/remedial courses.

Austin Community College (ACC) advisors can help you plan your course of study to maximize your chances of qualifying for this rebate. Learn more about the program at College for All Texans.

Workforce Investment Act Program

You may qualify for help in meeting your educational expenses through the Workforce Investment Act (WIA) program. Prior to enrollment at ACC, contact a WIA office to determine eligibility and types of assistance. Learn more at Workforce Solutions Capital Area or Workforce Solutions Rural Capital Area.