Tax Breaks: Students face multiple obstacles. They are of academic, as well as of non-academic origin. One of the common obstacles is related to the lack of money. They try to make a living for themselves without the help of their parents. It is a very difficult task and not all students succeed with it. Some of them simply don’t know how to save up money. They forget about various tax breaks for students.
Joan Young, a professional essay writer at Advanced Writers, has expressed an interesting opinion about this crucial matter. Here it is: “Clever students can save a lot, but the wisest save much more! It’s only necessary to define how to handle tax issues”. This opinion fully suits the topic of our informative guide. It sheds some light on the tax breaks for graduate and college students. Read on if you want to save up your money.
Top 10 Tax Breaks for Graduate Students
Here is the list of top 10 tax breaks for graduate and college students.
1. American Opportunity Tax Credit
In case you are still a schooler and are about to graduate from it, consider the American Opportunity Tax Credit (AOTC). This organization offers up to $2,500 for all learners. You may get fees that are necessary for college expenses. Mind that you can acquire this sum for 4 years, even if you study longer.
2. Lifetime Learning Credit
This option is available for students who already study in colleges or are about to graduate from them. Depending on the tax plan, you may acquire up to $10,000 for your learning needs.
3. Student Loan Interest
Another wise option is to use the student loan interest. It is given when parents or students themselves pay for educational needs. You may get a deduction that equals $2,500 per year. This is a great chance to reduce expenses for learning.
You can deduct taxes if you pay for yourself or your spouse while learning in college. The sum of the deduction varies depending on how much is paid per year. Therefore, you should discuss this matter with an expert to understand how much money will be compensated. The more you pay for your learning, the more personal funds will be returned.
Consider compensation for learning supplies. When a student pays for various stuff, which is necessary for his or her learning, he/she can get a refund. The sum of the deduction varies from $2,000 to $4,000. The educational supplies may be:
- Pens and so on.
Mind that if you pay for the same supplies instead of your spouse, you may likewise get a tax deduction.
All learning printed materials can also provide you with monetary compensation. If you buy them for yourself or your spouse, you may be lucky to get about $2,000-$4,000 back. The commonly printed materials may be:
- Manuals, etc.
7. Self-Employment Tax
Many students try to combine their studies with a part-time job. They want to be self-dependent and so try to earn when they can. This is another opportunity to deduct some taxes, especially if you intend to go into business soon after your graduation. Of course, you should consult a professional in this field to make sure everything is legal and will surely get what you deserve.
Remark: We will highlight one good option for students who intend to combine learning and work.
8. Home Office
There is another option to get tax deductions if you combine learning and work. If you work remotely from your home and are self-employed, you can get some money back. A lot depends on the space of your house. If your business is carried out in the house, and it may require some repairs and similar essentials, you will require a deduction. Commonly, it is $5 per square foot of your house. However, the sum varies depending on the state and its laws.
9. Car Expenses
Good news for all car owners. It is also possible to get a deduction if you own a car and are still a student. Everything depends on the purpose of using your vehicle. You can get monetary compensation if you use your car for:
- Or business needs.
Make sure you consult an expert in the field because various law regulations must be taken into account.
10. Travelling Expenses
Many students love travelling, and it may be a great possibility to get a tax deduction as well. You can get about 50% of the money spent back while you travel. Mind that it becomes possible if you are a self-employed student. You may acquire compensation for:
- Business purchasing
- Living accommodations
- Car expenses, etc.
Earn via Freelancing
Mind that you can save up, as well as earn money! It can be done in a variety of ways because students can try part-time jobs. These offer a unique possibility to combine learning and work. We have defined one especially beneficial job for all students who have advanced skills in various spheres. It is freelancing.
A student may have advanced writing skills and so work as a pro essay writer. Highly qualified essay writers are always in high demand. Perhaps you are good at programming or web design. All these jobs can be done right from your house and only need a gadget and access to the Internet. What are the benefits of freelancing for students? Check the next priorities:
- Work right from your home
- Control of time and more free time
- The possibility to choose how many orders to accept
- A chance to boost learning skills while completing orders
- Flexible schedule for other activities.
The Bottom Line
As you can see, the issue of taxes is tricky and may be complicated if you do not know where to get the breaks. Luckily, you can always reread our informative guide. It highlights the best solutions to save up your money and get what is required. Try all the points highlighted above, and you will surely meet all your financial goals.