College | March 29, 2019 | Jen Ryan
Are you looking for a way to get a little more money back in your tax return? Well, good news. If you paid for any education expenses last year, like tuition or even student loan repayments, you may be eligible for a tax benefit.
Tax benefits include tax deductions and tax credits. A tax deduction reduces the amount of income that you’re taxed on, while a tax credit reduces the amount of taxes that you owe. Both can translate to a little extra $$$ back in your tax return. (Cha-ching!) The key is to understand what’s available, determine your eligibility, and take action to ensure no money is left on the table.
Tax benefits are available for many common education expenses. Think everything from your college’s tuition and fees, to the interest on your private student loans and federal student loans. College and grad students aren’t the only ones who can take advantage of these tax benefits. Parents, college graduates, and even professionals taking continuing education courses may also be eligible for education-related tax benefits.
This handy graphic highlights the five most common higher education tax deductions and credits:
Use it to help you figure out which tax credits and deductions you may be eligible for. Just be sure to check with your financial advisor or accountant to ensure you’re taking advantage of the right benefits.