There are a number of tax deductions that college students and parents of dependents can use to help bring down their taxable income. Scholarships, qualifying loans and tuition are just a few of the things that a student can deduct. For a student to claim a deduction, generally no one else can claim them as a dependent. However, a parent claiming a child as a dependent can enjoy some college deductions.
Loan Deductions
If you are a student, you can deduct up to $2,500 on the interest of a qualifying student loan as long as no one claims you on their taxes and you are not married and filing separately. The income limit is $70,000 if single and $140,000 if married. The student loan must be used for education expenses.
Work-Related Education
As a student, you can deduct the cost of work-related education as long as your employer has not reimbursed you and the education is either required by law or significantly improves your job skills.
Tuition
Parents of dependents and students who are not dependents may qualify for a deduction of up to $4,000 for tuition and fees.
Eligibility
In order to qualify for these tax deductions, a student must have either a high-school diploma or GED and be attending at least one college course.
Ineligible
Room and board, transportation, medical expenses and insurance do not qualify as tax deductions.
Tags: student deduct, student loan