As a student, there are various write offs that you may be eligible to deduct on your tax return.
Some examples of qualified student tax write offs that are deductible are the interest you pay on student loans and your tuition and course supplies as long as you qualify under the income limitation.
Otherwise, education tax credits are the way to go. You’ll want to claim the credit you qualify for to maximize your deductions to reduce your tax liability. The following credits are available:
Lifetime Learning Credit:
This credit is guaranteed for life. You are eligible to receive this credit for any post-secondary education and there are no specifications as to what type of degree you are completing. You may be enrolled to complete your masters or PH.D, or you may be an adult returning to school to further your degree. This credit allows you to claim 20% of your expenses as long as you have spent a minimum of $10,000.00 in the taxable year.
American Opportunity Credit:
This credit is only available for the taxable years of 2009 and 2010 and is a modification of the Hope Credit. The income limitations have been changed and the credit has been increased by $700.00. This credit allows you to deduct for tuition and course material expenses. The total amount you may be eligible for is $2,500.00. Also, this credit can be claimed for the first 4 years of your post-secondary education.
Hope Credit:
This credit is available for the first two years of your post-secondary education and you may claim expenses for tuition and course supplies. The maximum deduction available for the Hope Credit is $1,800.00. However, because of changes through the government, if you qualify for the next two years you would benefit more by taking advantage of the American Opportunity Credit. Students need to be aware of the tax credits for college students.
For more information on student tax returns and answers to all your tax related questions, visit TurboTax Online today.
- Additional Child Tax Credit Amount - One of the most common tax credits is the child tax credit
The child tax credit can reduce the amount that you owe for taxes. If youʼre current tax liability is less than the child tax credit than you may be eligible for the additional child tax credit. This additional credit will allow you a refund. ...
- Fuel Tax Credit for 2010, 2011 - Are you wondering if you qualify for a fuel tax credit? I think we would all agree that everyone wants to claim any and all credits or deductions that we may qualify for.
There are several types of fuels that qualify for this credit, however there are requirements for each type of fuel group. Many of ...
- How To Know Home Tuition Works For Your Child? - How to know if your child gets the benefits from home tuition?
Home tuition for your child?, a good indicator of whether it is working or not is grades. For eg, if your child scored C before the tuition started, and now has received multiple Bs or even As on the subjects, this may be a ...