What a bummer! We already don't have any money and now Uncle Sam wants more of it! So, to combat the relentless draining of your money, I have compiled a list of some of the most useful and powerful tax deductions for students around.
One of the most stressful times for us students is the fact that we are always being bombarded with all sorts of fees, fines, parking passes, course fees, not to mention the ridiculously high tuitions that were paying. Man, this can really get a fello down. I mean we are being educated so that we can not only make a future for ourselves and our families, but also for the betterment of society (at least I hope so) in general. Well, guess what? Just when I'm about ready to call it quits, the federal government steps in and says, “Students and future hires of America, we give you tax deductions!"
So, here they are.
Life Learning Tax Credit - This tax deduction is available to all students who are taking a least one class from an accredited school. Students who qualify can receive credit for 20% of the first $10,000 they spend on educational expenses. There is also a maximum amount of $2,000 one can receive.
NOTE: Eligibility requires that single filers must have an adjusted gross income of less than $52,000 and joint filers must make less than $105,000.
Hope Scholarship Tax Credit - this is offered to all freshmen and sophomores that meet the above income requirements (less than $52,000 for singles and $105,000 for joint filers) can receive up to 100% of their first $1,000 and up to 50% of their next $1,000 they spend on education in tax deductions/rebates. The maximum amount one can receive is $1,500.
NOTE: In order to qualify the student must be free of any felony convictions involving narcotics.
Tuition Deduction - In most states students can receive tax deductions for their semester and/or yearly tuition. So, if you love to learn this can be a very powerful and helpful deduction.
Books - Although it is different for every student, this deduction can also help you to save this tax season.
Just as a general note, you might want to speak with your respective colleges/universities and/or tax advisers to see what else you can do to receive the tax benefits the federal government has provided.
Well my friends and fellow students, I hope this has helped or at the very least encouraged you to apply for and/or receive the tax deductions you deserve. And remember, nothing will happen if you don't take action. So please do! Applied knowledge is true power and you can use it to save money.
Attending School? Well. . . Don't let Uncle Sam take you for a Ride! Get More of the Tips & Tools you'll need to Save $100's this Tax Season. Visit: http://www.tax-wise.blogspot.com