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With the ongoing student loan crisis, many are still stuck in the 'broke college student' lifestyle long after graduation. As a recent graduate, you could qualify for some tax deductions to help alleviate financial pressure.
Fox Business highlights several tax benefits that might apply to you. Some of the most common ones include:
Deduction for Student Loan Interest:
The average student graduating in 2014 had more than $37,000 in student loan debt, according to NCES. As graduates begin earning salaries and repaying their loans, they can lower their taxable income by up to $2,500 on interest payments made for both federal and private student loans, as outlined by the IRS. Single filers with an adjusted gross income under $60,000 can claim the full deduction, while those earning between $60,000 and $75,000 can receive a partial deduction.
Lifetime Learning Credit:
This tax credit can provide up to $2,000 for individuals covering qualified expenses for higher education, or for an eligible student. To qualify, you must have been enrolled in school at least part of the tax year.
The article also outlines several other common deductions. If you're paying for college, it's definitely worth taking a closer look.
Photo by 401(K) 2012.
