A Look at Education Tax Benefits by Income

Low-income dependent undergraduates received education tax benefits at a lower rate than students in other income groups in 2007-8, according to a new report from the Education Department’s National Center for Education Statistics. Since then the picture has changed, however, with the introduction of the American Opportunity Tax Credit in 2009. A recent report by the College Board  found that the new credit has led to a larger share of the tax savings going to both high- and low-income families.