10 Vital Tax Deductions and Savings for Students

 

When you are in college, money never seems to be adequate. Funds are ever dwindling even when on a scholarship or grant. How then can one make ends meet when in college?

Tax Deductions and Benefits for Students

  1. Education Tax Creditsusnews says that the American Opportunity Tax Credit and Lifetime Learning Credit is extensible to students who pay college or trade school fees as long as their income falls below a certain amount.  Parents who pay such fees too may claim education credit on their tax return.
  2. Scholarships and Fellowships– scholarships and a student on a paid stipend for a fellowship are offered tax-free for degree candidates.
  3. Student Loan Interest– there’s a set limit for the maximum interest for a student loan that is tax-deductible under circumstances such as being single and income being under a certain amount.
  4. Education Related to Work– students who return to school from work to improve their job skills can claim an itemized deductions for expenses paid.

Saving Tips for Students

  1. Acquire Second-Hand Textbooks-these are always cheaper than new ones
  2. Exploit Student Discounts– various service providers and retailers extend discounts to students even if they do not advertise, be sure to ask if you can get a student discount
  3. Get A Coffee Maker– this saves a significant amount that is used in local coffee houses
  4. Stock Up Snacks– students often need to eat on the go many times which may lead to overspending along the way
  5. Capitalize On Free Entertainment– you do not always have to watch movies at the cinemas or throw an expensive party to be entertained
  6. Whenever Possible Buy Used– refurbished computers and electronics work just as fine as new ones though they are a lot cheaper.
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These are tips that turbotax ascertains any student can use to make his or her hard-earned cash last much longer.