As a student at Argosy University, Online Programs you may qualify for education-related tax credits that could increase your tax refund or decrease the amount of taxes you owe.
Below are some credits and deductions for you to keep you in mind as you file your taxes this year.
Tuition and Fees Deduction
As of 2013, students can deduct up to $4,000 in tuition and related expenses on their tax returns. You can't take this deduction if you take one of the tax credits below for educational expenses, so it's important to compare the benefits and decide which one to claim. In order to qualify, you must make less than $80,000 as a single taxpayer or $160,000 as a married couple.
American Opportunity Credit
The American Opportunity Credit allows students to claim up to $2,500 of qualified expenses for up to four consecutive years. To read in detail about this credit, check out our previous post from February. Briefly, here’s what you need to know:
• Qualified expenses include tuition, books, course materials and related fees.
• You must be in your first four years of college. You won't qualify if you've gone back to school for a second degree or you are in graduate school.
• If you are single, you must earn less than $80,000. If you file jointly with your spouse, you and your spouse cannot make more than $160,000 combined.
• Up to $1,000 of this credit is refundable, meaning that you can get this amount back at tax time if you don't owe any taxes.
Lifetime Learning Credit
If you don't qualify for the American Opportunity Credit, you may qualify for the Lifetime Learning Credit. This credit is available to anyone who is enrolled in a college-level course, regardless of how many years they've been in school or how long they've been studying.
This credit is similar to the American Opportunity Credit. You can claim up to $2,000 on tuition, books and related expenses. In order to qualify, you must make less than $60,000 as a single taxpayer. Married couples who file jointly may earn up to $120,000 together.
Student Loan Interest Deduction
If you are paying interest on any student loans, you can take a deduction of up to $2,500. All taxpayers who pay student loans qualify for this deduction, and you can take it even if you take other credits or deductions.
If you receive a tax refund this year, consider using part of it to make a cash payment toward your education or a payment on your student loans, which will help reduce potential debt for when you graduate.