NEWBERRY — Income tax season is approaching, and students might want to consider these tips from KHEAA to help the process go more smoothly.
Although you might not have earned enough to be required to file, you might get a refund if your employer withheld taxes from your pay. Before you file, discuss the tax situation with your parents. Depending on how much they contributed to your upkeep during the year, they might be able to claim you as a dependent on their tax returns, which could save them thousands of dollars.
Students and parents may be able to take advantage of these programs on their federal taxes:
· American Opportunity Credit, available for the first four years of college.
· Lifetime Learning Credit, available if a taxpayer or a dependent is taking college courses to acquire or improve job skills.
· Tuition and fees deduction, which lets taxpayers deduct qualified education expenses paid during the year for themselves or a dependent. The expenses must be for college.
· Student loan interest deduction, which lets people deduct up to $2,500 per year on federal taxes for interest paid on federal student loans.
For more detailed information about federal programs, go to www.irs.gov to download the free Publication 970 Tax Benefits for Education.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges.
The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the Free Application for Federal Student Aid (FAFSA).