Student Tax Write Offs

As a student, there are various write offs that you may be eligible to deduct on your tax return.

Some examples of qualified student tax write offs that are deductible are the interest you pay on student loans and your tuition and course supplies as long as you qualify under the income limitation.

Otherwise, education tax credits are the way to go. You’ll want to claim the credit you qualify for to maximize your deductions to reduce your tax liability. The following credits are available:

Lifetime Learning Credit:

This credit is guaranteed for life. You are eligible to receive this credit for any post-secondary education and there are no specifications as to what type of degree you are completing. You may be enrolled to complete your masters or PH.D, or you may be an adult returning to school to further your degree. This credit allows you to claim 20% of your expenses as long as you have spent a minimum of $10,000.00 in the taxable year.

American Opportunity Credit:

This credit is only available for the taxable years of 2009 and 2010 and is a modification of the Hope Credit. The income limitations have been changed and the credit has been increased by $700.00. This credit allows you to deduct for tuition and course material expenses. The total amount you may be eligible for is $2,500.00. Also, this credit can be claimed for the first 4 years of your post-secondary education.

Hope Credit:

This credit is available for the first two years of your post-secondary education and you may claim expenses for tuition and course supplies. The maximum deduction available for the Hope Credit is $1,800.00. However, because of changes through the government, if you qualify for the next two years you would benefit more by taking advantage of the American Opportunity Credit. Students need to be aware of the tax credits for college students.

For more information on student tax returns and answers to all your tax related questions, visit TurboTax Online today.

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