Information about Education Tax Credits

Important Information you will Need when Filing Taxes

Berea College Families – it is important to be aware that Berea College students and their families are typically NOT ELIGIBLE for Education Credits when filing federal and state taxes.

  • Because 100% of tuition at Berea College is covered for all students through grants and scholarships, you do not have tuition costs that would make you eligible for the credit.
  • Although some families have out of pocket costs for housing and meals, housing and meal costs (and other personal costs) do NOT meet the IRS definition for qualified education expenses for claiming Education Credits.
  • While most students and/or their families pay some out of pocket expenses for books and required fees, which do meet the IRS definition for qualified education expenses, in almost all cases these costs will be exceeded by the student’s labor earnings. Labor earnings are considered “tax-free educational assistance” under IRS guidelines and must be subtracted from any qualified education expense in determining eligibility for the credit. For all or nearly all Berea College students, labor earnings for the year will be more than out of pocket costs for qualified expenses, meaning they are ineligible for the Education Credit.
  • Student Financial Aid Services will send a tax letter to students’ CPO’s by February which will specify the total amount of labor earnings, as well as other details about the student’s costs and financial aid received.
  • If you believe you may be eligible to claim an Education Credit, please contact Student Financial Aid Services at 859-985-3310 to determine this, in order to avoid having to file an amended return if you claim the credit in error.