The Federal Tax Code: Higher Education Tax Benefits and Latinos
The “Tax Cuts and Jobs Act,” the latest tax bill from House Republicans, would result in a massive tax cut for the richest Americans and big corporations, while providing little, if any, tax relief to working- and middle-income families. The tax code currently has some provisions that help students and student loan holders make ends meet. For example, the American Opportunity Tax Credit (AOTC) allows students and their families to deduct expenses for higher education from their tax liability. Additional tax deductions are aimed at making higher education more affordable, including the deduction for tuition and fees and a deduction for interest paid on student loans.