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!
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