With school in full swing, we wanted to take some time and focus on tax credits and deductions that are available to eligible educators and students. There are several out there and if you have the ability to utilize them, why not!
Let’s start with educators.
As teachers, many of the classroom supplies and materials such as books, supplies, computer software, and supplementary materials must come out of your own pocket. Well, you have the ability to use the money you spent on those items as a deduction on your taxes. The maximum amount that you can claim for 2017 is $250. Chances are you spend more than $250, so you can deduct the difference as employee business expenses, if you can itemize your deductions.
In order to qualify for these deductions, you must be a teacher, aid, instructor, counselor or principal and you must work at a school certified by your state for at least 900 hours in one school year. Unfortunately, if you homeschool your children, you cannot deduct the materials you purchased to teach them.
Now let’s talk about students.
There are several tax credits that students can qualify for. Let’s learn about each of them.
American Opportunity Tax Credit: This is a credit that helps college students recover some of their tuition costs. This credit is available for the first four years of your college education. If you qualify, it is worth up to $2,500 per year. Find out if you’re eligible for the American Opportunity Tax Credit today.
Lifetime Learning Credit: This credit applies to anyone after high school for any post-secondary class you take. You don’t have to be working towards a degree to qualify for this tax credit. The maximum credit you can claim is $2,000.
Tuition and Fees Deduction: This deduction applies to any education expenses paid during the year for yourself, your spouse or for your dependents. The maximum deduction for this is $4,000. Learn more about the Tuition and Fees Deduction today.
Just a note, for the student credits or deductions – they cannot be combined. We suggest seeing which would give you the most money back.
If you have any questions about any of these credits or deductions, don’t hesitate to contact us today.
A Mazzo Accounting provides a variety of tax and accounting services to individuals and businesses in the Wyomissing, Reading, West Reading, Sinking Spring and Kenhorst areas, as well as towns and villages around the Greater Reading area. Our services for small to mid-size businesses include taxes, payroll services, accounting services, and bookkeeping services. We also provide a variety of services for individuals and they include tax return preparation as well as some accounting assistance.