Inflation, soaring prices, and higher education expenses are a terrible cocktail to drain any student’s savings. The IRS has a lot to offer to college students, so do not miss out on this great opportunity.
IRS tax benefits for college students can help you make ends meet. Not only can students benefit from them, but also their parents. Are you working on a FAFSA application? Here’s the Internal Revenue Service reminder.
How can I find out if I can get support from the IRS?
The best thing college students and their parents can do is to make use of the ITA. ITA is the Interactive Tax Assistant. In this way, you will find out if you are eligible for deductions, or educational credits.
Using ITA will allow you to know if you qualify for the LLC (Lifetime Learning Credit) or even the AOTC (American Opportunity Tax Credit). For your information, it is important to know that there are extra requirements if you are a student or dependent with ITIN.
ITIN refers to the Individual Taxpayer Identification Number. So, if you can get a tax credit,t deduction, or savings plan, it will definitely come in handy and will help you make ends meet.
What are the advantages of IRS tax credits, deductions, or savings plans?
If you are a college student and you qualify for a tax credit from the IRS, it will reduce the amount of income tax you may have to pay. No doubt it will be beneficial in your next tax return.
Another great thing is a deduction. It reduces the amount of your income that is subject to IRS taxes. In general, it helps you reduce the amount of tax you may have to pay.
Last, but not least, savings plans. Some of them will allow eligible taxpayers’ accumulated earnings to grow tax-free until the money is withdrawn. Another possibility is that it may allow your distribution to be tax-both, and sometimes both. For more detail, visit IRS’s website: https://www.irs.gov/newsroom/tax-benefits-for-education-information-center
