It’s that time of year again…tax season! If you are a current student or a recent college grad such as myself, you may be eligible for special tax credits and deductions. A few that might be of interest:
Lifetime Learning Tax Credit
This tax credit is available to students who take at least one undergraduate or graduate class from an accredited school. Qualifying students can get a credit for 20% of the first $10,000 they spend on educational expenses. The maximum credit is $2,000. To be eligible, single filers must have an adjusted gross income of less than $52,000 and joint filers must make less than $105,000.
Student Loan Interest Deduction
If you have student loans, your lender will send you Form 1098-E. This form will show the amount of interest you paid on your student loans for that year. The maximum amount of student loan interest you can claim is $2,500 per year. Report your student loan interest paid on Form 1040 Line 33 or on Form 1040A Line 18.
Hope Scholarship Tax Credit
This tax credit is offered to students who are enrolled in college at least half-time and are working on their first two years of undergraduate study. The income requirements are the same as the Lifetime Learning tax credit. You may be eligible to receive 100% of your first $1,000 of educational expenses and 50% of your next $1,000, with a maximum credit of $1,500. Filers must be free of any felony convictions involving the possession or distribution of controlled substances.
