Well, the end of the year is almost upon us – where does the time go? Before you know it, April is right around the corner and you’ll need to file your taxes! If you have kids that just moved off to college, or are a college kid that’s moved out on his or her own, there are some tax-time tips you should be aware of.
If you are a student or parent responsible for paying any college expenses, it is a good idea to keep all of your receipts. That means keeping the receipts from moving expenses associated with relocating to the dorms, travel, and everything else related to living on campus.
Some of these tax benefits can really help offset the costs of college. Read on to learn more about what you might be able to claim for this year.
- American Opportunity Credit – Qualified expenses include tuition and fees, textbooks, equipment and supplies. If your modified adjusted gross income is $80,000 (single) or less, you might qualify.
- Lifetime Learning Credit – If you have a kid in college, you cold qualify for up to $2,000. There’s no limit to how many years you can claim this credit. There are requirements for modified adjusted gross income.
- Tuition and Fees Deduction – Even if you don’t itemize your deductions, you might be able to reduce your tax by as much as $4,000. Of course, there are specifications you have to meet.
- Student Loan Interest Deduction – if you have a certain modified adjusted gross income, you might be able to deduct your interest payments on student loans.