02:20
With the colleges costing more and more every year, families are looking for ways to manage their finances. In case you a child who is going to attend college this year or you are a college going student and you are not claimed as a dependent, you just need to keep good records because that can get you some wonderful tax results and deductions for college expenses. Here are some Back-to-school education tips that can save you your money this year :
American opportunity Tax Credit - The American tax credit costs around $2500 per year to an eligible student. This particular credit can be claimed for the first four years of higher education and 40% of the AOTC is refundable. Even if you do not have any income tax withholding and you are an eligible student,you can get up to $1000 of the credit as a refund.
To be eligible for AOTC, the student must:
Be pursuing a degree or other recognized education credential
Be enrolled at least half time for at least one academic period* beginning in the tax year
Not have finished the first four years of higher education at the beginning of the tax year
Not have claimed the AOTC or the former Hope credit for more than four tax years
Not have a felony drug conviction at the end of the tax year
2. Lifetime Learning Credit - This credit can be used when a student wants to pursue Undergraduate, Postgraduate, Professional Degree Courses and lastly courses to acquire or improve job skills. It is provided for worth , $2000 on your tax return. Moreover, it is not limited to the some number of years, but it can be claimed by the eligible student whenever he/she needs it.
To claim a LLC, you must meet all three of the following:
You, your dependent or a third party pay qualified education expenses for higher education
You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution
The eligible student is yourself, your spouse or a dependent you listed on your tax return
To be eligible for LLC, the student must:
Be enrolled or taking courses at an eligible educational institution
Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills
Be enrolled for at least one academic period* beginning in the tax year
3. One credit per student - The same student cannot take advantages of more than one education benefit on the same expense. In case there are two students qualifying for the same education benefit, then one can be given AOTC and the other can claim for LLC, but the same student cannot claim for two education benefits in the same year. Moreover, if a student gets tax-free educational assistance, for example a grant, you need to subtract that amount from your qualified education expenses.
4. Qualified Expenses - Qualified expenses include tuition fees and the other related costs required for enrollment or attendance at an eligible educational institution.
Along with learning, the entrepreneurs working with the world’s best local SEO, understand the value of saving even a penny and therefore this is a chance for all the eligible students to save dollars for getting a higher education.
American opportunity Tax Credit - The American tax credit costs around $2500 per year to an eligible student. This particular credit can be claimed for the first four years of higher education and 40% of the AOTC is refundable. Even if you do not have any income tax withholding and you are an eligible student,you can get up to $1000 of the credit as a refund.
To be eligible for AOTC, the student must:
Be pursuing a degree or other recognized education credential
Be enrolled at least half time for at least one academic period* beginning in the tax year
Not have finished the first four years of higher education at the beginning of the tax year
Not have claimed the AOTC or the former Hope credit for more than four tax years
Not have a felony drug conviction at the end of the tax year
2. Lifetime Learning Credit - This credit can be used when a student wants to pursue Undergraduate, Postgraduate, Professional Degree Courses and lastly courses to acquire or improve job skills. It is provided for worth , $2000 on your tax return. Moreover, it is not limited to the some number of years, but it can be claimed by the eligible student whenever he/she needs it.
To claim a LLC, you must meet all three of the following:
You, your dependent or a third party pay qualified education expenses for higher education
You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution
The eligible student is yourself, your spouse or a dependent you listed on your tax return
To be eligible for LLC, the student must:
Be enrolled or taking courses at an eligible educational institution
Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills
Be enrolled for at least one academic period* beginning in the tax year
3. One credit per student - The same student cannot take advantages of more than one education benefit on the same expense. In case there are two students qualifying for the same education benefit, then one can be given AOTC and the other can claim for LLC, but the same student cannot claim for two education benefits in the same year. Moreover, if a student gets tax-free educational assistance, for example a grant, you need to subtract that amount from your qualified education expenses.
4. Qualified Expenses - Qualified expenses include tuition fees and the other related costs required for enrollment or attendance at an eligible educational institution.
Along with learning, the entrepreneurs working with the world’s best local SEO, understand the value of saving even a penny and therefore this is a chance for all the eligible students to save dollars for getting a higher education.
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