Millions of Americans deal with high costs for college tuition and other expenses related to furthering their education, and these can often be extremely burdensome even for those who are well-off. Fortunately, the federal government allows consumers to write off up to a few thousand dollars related to these bills as long as they meet certain conditions, and this can serve to significantly reduce their tax liabilities.
There are a number of higher education tax credits available to consumers depending upon certain scenarios they might have experienced last year, according to a report from Providence, R.I., radio station WPRO 630. In fact, consumers who made less than $80,000 in 2013 - or less than $160,000 for married couples filing jointly - can claim tax the American Opportunity Credit which will reimburse them for as much as $2,500 per college student, as long as that person had tuition bills of $4,000 or more last year. This can also include the cost of books and other school supplies, too, and applies both to people paying for their own education, or parents or guardians covering the costs for their dependents.
However, taxpayers who are eager to claim this deduction will have to keep in mind that there are other education credits out there as well, but they can only claim one of them. As such, it might be wise for them to do a little bit of math to determine exactly which will offer the best possible tax savings for the year, so as to maximize their benefit.
education credit of a different type
Of course, not everyone is still paying tuition, but for those who work in education themselves, the expenses they often face to supplement their classroom supplies can usually be written off to an extent, the report said. Teachers can write off up to $250 worth of such purchases made last year, but will also have to keep in mind that this is the last year in which they are going to be able to claim the benefit.
Consumers worried about what they will and will not be able to claim on their annual filings might want to speak with a tax professional to determine that everything they want to deduct is as it should be, and no other problems linger on their documents.