Plan For College

Friday, March 28, 2014

Last-Minute Tax Breaks for Tuition-Paying Parents

April 15th is just a few weeks away. So if you're a last-minute, cramming tax payer... you may want to known about some tax credits and deductions that can help you save on the big college tuition bill you've been paying. Here are four tax breaks (with more in-depth articles in the links) you can take advantage of while filing your taxes for 2013:

1. American Opportunity Tax Credit

Households earning up to $160,000 can get a tax credit of $2,500 for each student, for up to four years. This applies to students who are pursuing a college degree or certificate. NASFAA (National Association of Student Financial Aid Administrators) came out with their list of tax credits and tax deductions for the tax year of 2013. You can learn more about the American Opportunity Tax Credit over on its site.

2. Lifetime Learning

You can claim 20% of your out-of-pocket costs (up to $10,000) for tuition, fees, and books. The maximum credit you can earn in a year is $2,000. You can claim this for any type of student in the household. It doesn't have to be just undergraduates. You can learn more on Kiplinger's website.

3. Deduction for Student-loan interest

You can deduct up to $2,500 in student loan interest if you, your spouse, or a dependent is enrolled at least half-time in a degree program. Like the other credits and deductions, there are income limitations. On top of that, the person paying for the loan is the only one who can claim the deduction (so your child cannot claim it on his or her return if they aren't footing the bill). You can learn more at Savingforcollege.com.

4. Tuition and fees deduction

This deduction can reduce your income subject to tax up to $4,000. You can learn more on the IRS's website.

So if you're sneaking in your taxes just before the April 15th deadline, then make sure you are making the most of your tax credits and deductions for college tuition.

Want to make sure all of your kids are on track? 
Download our free, 15-page college planning timeline.


26 comments:

  1. Infection is accustomed is abounding cases hermes replica even if disposable cartridges are acclimated but, if the locations are acclimated afield or if the piercer doesn't yield accepted cleanliness action while applying alarming broad physique chanel outlet jewelry. Physique fluids from one client, or axiological microorganisms that is artlessly an affair if it enters a cut, could potentially become kept replica chanel assimilate any ambit of the entering weapon, and a abbreviate time afterwards traded to an alternating client. Penetrating weapons use column loops of a accepted length. Humans with blubbery ear bond may iwc replica acquisition that their new studs are bound if projections cool in the deathwatch of piercing, and that they accept beside aught column breadth to use for amplification to abate the weight. Non-Allergenic Earrings tag heuer replica guaranteed. Bearings & Follow-up Services.

    ReplyDelete
  2. A strap dangles within the ceiling, special coaches are actually while using the TRX Australia for assorted decades.
    Most importantly down, the full offer cheap trx for sale about solely various pounds.
    Whether it is trx strpas sale or fashion accessories all means a lot for modern society of today.
    Same is the case with trendy looking trx workouts.
    The following trx uk gym is adjustable at the same time, providing this trouble-free to make use of for virtually every everyone.
    Straps previously defined in addition phase alterations, to top Cheap TRX UK all away, the full package deal has a weight of simply a number of lbs.

    ReplyDelete
  3. Wonderful, very useful information for me, thank you for sharing
    ----
    play game juegos de terror online | play game juegos de terror | juego de terror

    ReplyDelete
  4. cheap ray ban sunglasses uk sale cheap ray ban sunglasses uk immediately saw the meat and bones like a dog, chasing its tail, cheap ray ban sunglasses uk gallant. The old man chuckled, this kid, cheap ray bans uk but added quickly fade, it really is shameless. The old man asked, you know where you are. This is not your cheap ray bans uk perception of cheap ray ban sunglasses uk the world.

    ReplyDelete
  5. Agree, this information is really useful...But for tuition-paying parents that sounds a bit confusing

    ReplyDelete
  6. This comment has been removed by the author.

    ReplyDelete
  7. This comment has been removed by the author.

    ReplyDelete
  8. Thanks a lot for the information, this resource will be useful for those who are keen on education royalessays

    ReplyDelete
  9. If someone needs professional help in writing essay I recommend you to buy research paper online.

    ReplyDelete
  10. I am glad that our country has such a wonderful tax system! I mean these tax breaks can really help students get into college without breaking the bank. Although I would love to see a program that would support the students in such a way that by their graduation they or their family are not in debt because of the studying. I mean wouldn't it break to let people out of college without a baggage behind their backs.

    ReplyDelete
  11. I liked this post very much! Thanks!

    ReplyDelete
  12. How many games have you been to this yearWe are wholesaler of Nike Jordan and Other Shoes in China.Free People Search EngineAfter a long search for old school friends, I kept finding search engine websites.
    Yepi 12 | Kizi games | 85play

    ReplyDelete
  13. You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependents. You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return.

    ReplyDelete