Parents, are you hating the morning rush and back to school traffic? Are you already caught in the whirlwind of school, activities and homework?
Yes, summer is officially over and while we dislike some of the things that come with it, we do love back to school savings.
Take a look at these tax and scholarship opportunities for everyone in the family. We hope you use the extra pennies in your piggy bank to have some fun!
American Opportunity Tax Credit or AOTC. This is a tax credit available for the first four years of a post secondary education on expenses such as tuition, fees, books, supplies and equipment. The credit can be up to $2,500 per eligible student and 40% of the credit is refundable. This means that you may be able to receive up to $1,000 of the credit as a refund, even if you don’t owe any taxes. The credit is now available through the end of December 2017.
Lifetime Learning Credit or LLC. Whether you’re on the five-year-plan or a student for life, you might be able to claim up to $2,000 per student on your tax return this year. If you have more than one student in your home, you can claim this credit for one student and the American Opportunity Tax Credit for the other. If a student is eligible, there is no limit on the number of years you can claim this credit. For more information call us or visit www.irs.gov.
Florida School Choice Scholarship. Some states, like Florida, offer scholarships to students with disabilities that can be used towards private school. To find out if your child qualifies, visit www.floridaschoolchoice.org
Student Loan Interest Deduction. If you owe a student loan, you might be able to deduct the interest you pay on it. The deduction can result in a reduction of taxable income up to $2,500, plus you won’t need to itemize your deductions to claim it. Not bad!
If you have more questions about possible back to school savings, e-mail us. The DM Accounting team can school you in the ins and outs of tax-time savings!