Education Tax Beneifts
You could save tons of money with the following education credits and deductions:
- American Opportunity Credit or Hope Credit — You can claim either the American Opportunity Credit or the Hope Credit. The American Opportunity Credit is equal to 100% of the first $2,000 and 25% of the next $2,000 per student for tuition and related fees, with a credit maximum of $2,500 per student. It's restricted to the first 4 years of college and can be claimed only 4 times per student. Up to $1,000 of the credit may be refundable.
- Lifetime Learning Credit — A credit of 20% of your annual tuition and related fees, with a credit maximum of $2,000 per return. The tax credit may be claimed for an unlimited number of years.
- Tuition and Fees Deduction — You can deduct up to $4,000 per student for tuition and fees.
- Student Loan Interest Deduction — Deduct up to $2,500 per return for interest paid on student loans.
If you qualify, you could get a tax credit for up to half of what you contribute to a qualified retirement plan or IRA. Claim the Saver's Credit if you meet all the qualifications: You can claim $1,000 for each child. The 2009 Child Tax Credit begins to phase out when your AGI is more than these limits: If your income tax is reduced to zero and your earned income is more than $3,000, you may be eligible to claim the additional Child Tax Credit. Keep track of job expenses not reimbursed by your employer. You could deduct these costs: Moving Expenses Even if you don't itemize income tax deductions, you could deduct moving-related expenses. Your move must meet the following qualifications: Saver's Credit
Child Tax Credit
Out-of-pocket Job Expenses
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