College students, recent grads, and parents who help with college expenses can pay less in taxes just by paying for school. Seriously! And it’s easy, too — all they have to do is claim one of these education tax credits or deductions on their federal income tax return.
You may think “filing taxes” and “easy” don’t belong together. However, we broke down your four main options to help you better understand them. You can’t claim both education credits or a credit and the tuition and fees deduction in the same year, so crunch the numbers or talk to a tax professional to figure out which puts the most money in your pocket.
Tax Credit Options
Tax credits increase your savings by decreasing the tax you owe the government, regardless of what you did or did not pay during the year through withholding or tax estimates.
For instance, if you…This post was originally published on this site