Make your studies work for you! $$$, What you should know before starting your studies

If you're thinking about improving your English, learning something new, or starting a new career, there's something important many people don’t know:

Not all educational programs offer the same benefits — like academic credits — and therefore, not all allow you to claim deductions or tax credits when filing your tax return.

📘 What Are “Credit” and “Non-Credit” Studies?

When you enroll in a school, institution, or university, programs are typically divided into two types:

✅ Credit Studies

These are part of a formal academic program, such as a university degree or professional certification. Each class earns you academic credits, which work like points you accumulate toward earning a diploma or certificate.

Advantages:

• You can use the credits to obtain a diploma or certification or transfer to another institution.

• They are recognized by the official education system.

• They often qualify for tax benefits, such as the 1098-T form.

❌ Non-Credit Studies

These are classes designed to help you learn specific skills but are not part of a formal academic program. They do not award academic credits; although helpful, they usually do not qualify for tax benefits.

Examples: Beginner English workshops, basic computer skills, cooking, sewing, etc., usually offered by community centers or continuing education programs.

Disadvantages:

• These classes do not provide transferable grades or credits toward a college degree or higher-level program.

• Accredited institutions do not recognize them, meaning you won’t receive the official tax form needed to claim education-related tax benefits.

💡 How Do You Know If Your Studies Help You Save on Taxes?

Ask the school if the program qualifies for the 1098-T form, which institutions for eligible educational programs issue. This is particularly important if you are considering study courses like English, IT, or business, which are commonly part of college-level programs.

If your studies qualify, you may be eligible for:

• A tax benefit that reduces the amount of taxes you owe.

• In many cases, a direct refund.

Tax Credits You Might Qualify For:

• Lifetime Learning Credit (LLC): Up to $2,000 per Tax declaration for eligible education.

• American Opportunity Credit (AOTC): Up to $2,500 per student during the first 4 years of higher education.

⚠️ If the school does not issue the 1098-T, or the course is non-credit, it's very likely the program does not qualify for education tax benefits.

🔍 How Do You Know If an Institution Is Officially Recognized?

For your studies to be recognized by the government (and the IRS), the school must:

• Be accredited by the U.S. Department of Education

• Participate in federal student aid programs

• Issue Form 1098-T when applicable

How Can You Confirm This?

• Ask the school directly: Ask whether they participate in federal student aid programs and issue Form 1098-T to eligible students.

• Search official databases: Check the Database of Accredited Postsecondary Institutions and Programs (DAPIP) or the Federal Student Loan Program list through the U.S. Department of Education.

• Check to see if you received Form 1098-T. Eligible institutions are required to provide it to students who make qualifying payments.

📌 Important Note: The IRS only recognizes institutions that meet these criteria. Not all schools or learning centers qualify, even if they offer helpful or practical courses. Some schools don’t issue the 1098-T if your tuition was fully covered by scholarships or if the course was non-credit.

🎯 Which Type of Study Is Right for You?

If you're unsure which path to take, consider your personal, academic, and financial goals:

• 🎓 Want to earn a degree or official certification? Choose formal studies at an accredited institution that offers academic credits.

• 📘 Prefer to learn something new without committing to a full program? Workshops or non-credit courses may be a great option.

• 💰 Want to save money on your tax return? Ensure the institution is officially recognized and issues the 1098-T form, if applicable.

Studying supports your personal and professional growth and can help you pay less in taxes or receive a refund.

💬 Not sure if your studies qualify for tax benefits? Leave us a comment or book a free consultation with our team.