Tax Playbook · Big life moves
Education tax credits
The American Opportunity Credit can cut your taxes by up to $2,500 per college student per year, for the first four years of college. If you owe no tax, up to $1,000 of it comes back as a refund. The Lifetime Learning Credit is up to $2,000 per year, but none of it can be refunded. For example, a mom who pays $4,000 in tuition gets a $2,500 credit, saving her $2,500.
Good for: Parents and students paying college tuition.
Learn the basics
Recent articles & guides
- Uncle Kam: Education credits 2026 changes explained
- Optima Tax Relief: The American Opportunity Credit
- Smith Anglin: Top 2026 education funding tips for parents & grandparents
On this site
Related strategies
Roth conversions in low-income yearsIn a year your income is low — a gap year, early retirement — move money from your pre-tax retirement account …Move to a lower-tax stateMoving from a high-tax state like California to Texas or Florida can save five figures a year in state income …Annual gifts & the lifetime exemptionIn 2026 you can give anyone $19,000 a year ($38,000 per couple) with no tax paperwork. And over your lifetime …Bunch medical expensesYou can only deduct medical bills that are more than 7.5% of your income — say you earn $100,000, so the first…IRMAA: keep Medicare premiums downWhen you turn 65, Medicare checks your income from two years ago. For 2026, if that income is over $109,000 (s…Roth IRAs for kidsA child with a real job can have a Roth IRA. In 2026 you can put in up to $7,500, or less if the child earned …
Browse all 97 strategies in the interactive playbook
Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.