There are tax deductions and credits for education you can claim come tax time. Here tips to help you claim tax deductions for education.
The cost of higher education is a bit high. Therefore, parents, guardians or students need to have a good budget to advance their level of education. However, the IRS allows you to claim some education tax deductions as well as credits. These deductions and credits aim to ease your financial burden so that you can pay for education or student loans comfortably. However, not all students qualify for these education tax credits and deductions. To enlighten you more on how you can claim education tax deductions and credits, here are 3 tips for you.
First, Know Tax Deductions and Credits Available
Before your file your taxes, you need to know what tax deductions and credits you qualify for. Beside the common tax deductions and credits you are used to, you should also find out the education tax deductions and credits you may be able to claim. One of the tax credits you may claim is the American Opportunity Credit. This credit aims to take care for expenses incurred for the first four years of higher education or post-secondary education. The tax credit is worth up to $2,500.
Another essential tax credit you should think about is the Lifetime Learning Credit. This credit is available to all tax payers pursuing a degree or taking any course to further their education. The tax credit is worth $2000, and is non-refundable just in case the amount granted is greater than your tax bill. Other deductions you need to look into include the tax deductions for student loans, tuition fees deductions, among several others.
Confirm What You Are Eligible for
You don’t want to make mistake when preparing your tax returns come tax season. Therefore, you need to know some of the tax deductions for education available, and find out which ones you are eligible for. This will help you gather the right tax filing forms and documents, and make the process less stressful. You may have to hire a tax expert, but it’s advisable to use online tax filing software like TurboTax to know which education tax credits and deductions you are eligible for. You just need to provide essential information, and the software will outline the educational tax credits and deductions you qualify for the year.
From there, File Your Taxes online
Tax preparing and filing is a stressful process. However, there is a simpler way to file your taxes; online tax filing. You will access all the tax forms you need, provide essential information, and the software will do the rest. The software will include all your education tax deductions, to make sure you save big come tax time. You can use either TurboTax or H&R Block for online tax filing.
Many parents and students forget about education tax deductions and credits that can help them reduce their total tax bill. However, with the above tips, you can easily know what you are eligible for and claim it come tax time. That way, you will be guaranteed to pay a less tax bill or even get a tax refund.