Are you a college student or parent of a college student? You may qualify for certain tax breaks, including the American Opportunity Tax Credit, the Lifetime Learning Credit, or the Student Loan Interest Deduction. Education savings accounts like Coverdell or 529 plans may also help manage college expenses. For a complete list of tax benefits for college students and parents visit: IRS Tax Benefits for Education Information Center. To learn more about these credits and how they may contribute to your tax savings, read: What to Know About Tax Breaks for College Students and Parents
Tag: tax credits
Getting the Most Out of Your Education
Did you know that by including certain scholarships as income you might be able to increase your education credit, reduce your total tax, or increase your tax refund? The key is finding awards that may be used for other expenses such as books, or room and board.
For detailed instructions on determining what kinds of grants and scholarships are eligible and how to apply these for best tax savings, see Maximizing the higher education tax credits: Including a scholarship in gross income can sometimes save on taxes in the Journal of Accountancy.