There are many tax credits available, but if you are in post-secondary school then you may eligible for more. There are education tax credits available for students in post-secondary education. However, there are different rules and regulations about each credit that you need to understand. I will do my best to cover the basics of each. If you have further questions about your eligibility for these credits, you should contact Evans Nelson & Company CPAs.
The first type of education tax credit is the Hope Credit, which applies to your first two years of post-secondary education. However, with the American Opportunity Tax Credit, the Hope Credit has been expanded to cover four years of post-secondary education. This is the larger of the two main credits and thus it is important to understand it. Visit the IRS’ website for more information about this credit and the new modification.
The second credit that is available is the Lifetime Learning Credit. This credit generally provides a tax deduction for 20 percent of the amounts paid for qualified education expenses and is good for any post secondary education you take throughout your lifetime. This credit is smaller than the Hope Credit, but there is no limit on how many years you can apply it to.
The last education tax credit that is available this year is the Tuition and Fees Deduction. This deduction can be taken above the line, or from your gross income, so there is often more tax advantage depending on your income tax rate.
As a student, you have some additional tax credits that you need to be aware of, but you need to be sure to get the most out of them. The best way to do this is to contact a Reno CPA and start taking advantage today.
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