Can Your Student Status Save You Money on Taxes?
If you’re paying for college tuition, you’ll probably need all the help available, and luckily, you should be able to get at least a small tax credit. To find out if you are eligible for certain education-related loans and deductions, the IRS has created an interactive online tool.
According to the IRS, this tool helps you determine if you are eligible for certain student loans or deductions, such as American Opportunity Credit, Lifetime Learning Credit, and tuition and fees withholding.
Lifetime study credit is up to $ 2,000 per tax return, and if you or a dependent paid for college expenses, you may be eligible based on your income. There are income restrictions and some requirements, so see the details below . In the IRS leadership . You can also qualify for an American Opportunity Credit of up to $ 2,500 to cover the cost of a qualified education. However, there are a number of other requirements and regulations, and the IRS tool can help you figure this out, depending on your situation. They say you need the following:
- Submission status
- Student Enrollment Status
- Your Adjusted Gross Income
- Who paid the expenses, when were they paid and for what academic period
- If any expenses were paid with non-taxable funds
- If any expenses were paid for by an allocation from a Coverdell Education Savings Account or Skilled Learning Program
When you have everything you need, use the tool at the link below.