College Related Expenses to Write Off

If you are a college student or the parent of a college student, you know that college can be expensive and you want to do everything in your power to get some money back when tax time rolls around. The good news is there are quite a few college related expenses that can be written off. This article is going to cover exactly what they are.

Tuition and Fees Deduction

If you are a college student or have a dependent that is a college student, taking the tuition and fees deduction can be beneficial to you. This deduction allows you to deduct up to $4,000 off your taxable income. However, if you are married (even if you file separately), or if you can be claimed as a dependent by another taxpayer then you are not eligible to take advantage of this deduction.

Student Loan Interest Deduction

This is a deduction that many students and parents are not aware of. This allows you to deduct the personal interest that you pay on your loans. However, there are specific requirements that have to be met. If you meet them, you can deduct as much as $2,500.

 

 Check out our Redmond CPA blog for more articles on tax topics!

 

Business Deduction

If you are an employee and itemize your deductions, you may qualify for the business deduction. This deduction is for those who are going back to school for work related reasons. However, you have to make sure that what you are deducting is acceptable according to the Qualified Work Related Education guidelines.

Closing Thoughts

There are various deductions available to college students and their parents. These are just a few of them and if you qualify, you could potentially deduct thousands of dollars.

Are you looking for a Bellevue CPA? We are a great choice! Give us a call at (425) 483-6600!