As a college student, you are looking for ways to pinch your pennies. What if we at Hoods Tax and Accounting knew of a few ways to keep your money you earn in your pocket? Continue reading to learn how you can use tax breaks to your advantage!
For every eligible student, there is a tax credit up to $2.500 for education expenses like tuition. You must be pursuing a degree in order to receive this American Opportunity Tax Credit, and can only receive it for four years.
Similar to the AOTC, the Lifetime Learning Credit will give eligible students up to $2,000 for pursuing their education. This has no limit to how many years you can receive/file for this credit.
If you are a college student who qualified for student loans and now has to pay them off plus interest, listen to this. On your taxes, you can deduct up to $2,500 of the interest you paid over the past year!
You can even get your tuition and fees deducted up to $4,000! Make sure to remember that this is a deductions and you won’t get refunded any of that amount.
If you or someone you know is attending college, or have recently graduated, show them this information! While you do that, let them know about Hoods Tax and Accounting! If you have any further questions, do not be afraid to give us a call!
Discovering Deductibles: Family Edition
There is a wide variety of information regarding Deductions for families with children, so we encourage you to come into the Hoods Tax & Accounting office in order to have one of our resourceful employees help you understand and find the deductibles you are qualifies for. In the meantime, here are a few general deductions a family with children could be looking toward.
Exemption for Dependents
For the average person, the personal tax expedition is roughly $4,050. Each person within a household can qualify for this exemption and your child can participate in the expedition as well. This deduction will continue until the child turns 19.
Chid Tax Credit
If your income is below $110,000 (Married joint filling) or $75,000 (single), you can claim a chid tax credit of $1,000 per child. You must fill out the chid tax worksheet in IRS Publication 972, Child Tax Credit. If you are having any trouble, Hoods Tax & Accounting is here to help.
Educational Deductions and Credits
If your child has chosen to attend a four-year college program, you can benefit through three different credits. If your child is attending college, you can credit your taxes up to $2,000. If your child decides to attend Graduate school you can apply for the Lifetime Learning Credit of $2,000. Also, student loan interest in deductible up to $2,500.
Medical expenses can be expensive. If you or your child has expenses more than 10% of your adjusted gross income, you can deduct them if you keep all the receipts. Did you know you can even deduct your millage to the doctor at .23 cents per mile?
While it may not be the option for everyone due to the amount of money it costs to adopt a child, those who do can claim up to $13,400 credit for the expenses.
Life is easier when you understand the world of Taxes. At Hoods Tax & Accounting we strive to help you spend less on your taxes and more on fun for your family. Come in today and meet with our staff to learn more!
Write something about yourself. No need to be fancy, just an overview.