College can be costly. Fortunately there is help in the form of tax relief for many students. As the economy struggles, and unemployment hovers around 9%, many people are turning to school as a chance to improve skills to get the jobs that are available. Laura Saunders of the Wall Street Journal offers great advice to students, young and old, who are in need of serious tax relief in her article titled Tax Breaks for Students. Tax expenditures are available to students as a way to cut costs and make school a more desirable choice for some people. Below are a few of the tax cuts Saunders highlights in her article:
- American Opportunity Tax Credit: A tax credit available for students during four years of undergraduate education. It is a “dollar-for-dollar tax offset of up to $2,500″. The credit can be applied towards the cost of books, supplies and equipment in addition to tuition. And $1000 of the credit is actually refundable, meaning you will receive a check if you don’t owe any income tax.
- Lifetime Learning Credit: This is a great credit for individuals going back to school (continuing education) to gain more skills for employment, and it also applies for graduate and undergraduate education. The Lifetime Learning Credit can help offset up to $2000 for tuition and fees per year.
- Student Load Interest Deduction: Anyone with college loans knows what a help this deduction can be. Interest on college loans used for expenses such as tuition and transportation can be deductible for up to $2500 year.
To learn more about great tax relief expenditures available for students I highly recommend reading Saunders full article Tax Breaks for Students. She offers more insight on tax breaks for students and how they can benefit you before you run into problems with the IRS.
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Tags: American Opportunity Tax Credit, income tax relief, lifetime learning credit, student loan interest deduction, student tax relief, tax help, tax relief, tax relief tips, Tax Tips, Wall Street Journal