eLearners.com: 3 Tax Tips that Could Save You Money

3 Tax Tips that Could Save You Money

This year's tax season is almost over (only two more weeks to file your returns!). If you're thinking about going to college, plan now for next year. Use the following tips to access potential tax breaks and financial aid for qualifying students. Save Your Paperwork Hang onto your 1098-T form, which can help you determine if you qualify for the American Opportunity or Lifetime Learning tax credits. Also, financial aid used for tuition, textbooks, and required course materials is not taxable income. So save the receipts for any hardware or software you will need for online courses.* Deduct for Work-Related Education If you plan to take online courses to improve your skills in your current career field, you may be able to claim your tuition as a tax deduction. Some teacher education courses, new technology courses, and vocational courses may qualify.* Ask Your College about Work-Study Jobs If your online college has a local campus (like USC, Boston University, UNC, or the University of Florida), you may qualify for work-study aid. Although work-study income is still taxable income, it isn't counted toward your Expected Family Contribution (EFC) on next year's FAFSA. This means, in 2013, you may be eligible for more financial aid than if you'd earned the same amount of money through a regular employer. *Consult a certified tax professional and/or the IRS for full details and requirements.