CAUTION: Submitting these Tax Credits/Deductions May Result in a Large Refund!
Waiting until April 15 to file your taxes for fear of owing? Remembering to enter these educational tax credits/deductions in could alleviate some stress. We can’t all be tax professionals, but here are a few tricks of the trade to help you maximize your refund.
|
Tax Credit/Deduction |
Available to Undergraduates |
Available to Graduates |
Annual Benefit |
Maximum Income |
IRS Form |
|
Lifetime Learning Tax Credit |
Yes |
Yes |
Up to $2,000 |
$62,000 $124,000 |
Form 1098-T and Form 8863 |
|
American Opportunity Tax Credit |
Yes |
No |
Up to $2,500 |
$90,000 |
Form 1098-T and Form 8863 |
|
Tuition and Fees Deduction |
Yes |
Yes |
$2,000-$4,000 |
$80,000 |
Form 1098-T and Form 8917 |
|
Student Loan Interest Deduction |
Yes |
Yes |
Up to $2,500 |
$75,000 |
Form 1098-E |
Make sure you check your mail or the myAlbertus Portal for your 1098-T Form. This form will show you how much tuition was paid in 2014 and is needed to claim the Lifetime Learning Tax Credit, American Opportunity Tax Credit, or the Tuition and Fees Deduction. Remember you can only use one of these benefits each year, so you may want to consult a tax professional to determine which one will work best for you.
However, for the many students who opt to pay the interest that has accrued on their student loans while still in school, there is an additional opportunity to save with the Student Loan Interest Deduction. Form 1098-E will be mailed to you or is available for download from your loan servicer.
Don’t know if you need to file? Whether or not you need to file depends on your gross income, filing status, and age. If you are single, under 65, and claiming yourself as an exemption, you must file if your gross income was at least $10,150. If you can be claimed as a dependent on your parents’ taxes and have an earned income of at least $6,200 you have to file. And remember, just because you’re not required to file doesn’t mean you shouldn’t! If you had taxes withheld from your paycheck, you may have the ability to get it back.
For more information, check out IRS Publication 970: Tax Benefits for Education to see if you qualify for any tax credits/deductions.
And remember, you don’t need to have completed your taxes to complete your FAFSA! The returning student FAFSA deadline and the 2014 tax filing deadline are both April 15.
Stop by the Financial Aid Office for more information. Remember, we’re always here to help!
(This blog was prepared for informational purposes only and is not meant to be tax or legal advice).