Tax credits or deductions may be available to you or your parents while you are attending Ball State. Below are some common ones, but we emphasize that you should check with your family, the IRS, or a tax expert for the latest information and information that applies to your situation.
Tax credits and deductions
Two tax credits that you should be aware of are the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit. They both allow you to subtract, on a dollar-for-dollar basis, the amount of the credit from your total federal income tax bill. This is different from income tax deductions, which are subtracted from your income before your taxes are calculated. As a result, tax credits usually allow for greater total savings than tax deductions.
To learn more about income tax credits and deductions, read IRS Publication 970 (pdf).