3 STUDENT TAX BENEFITS
you may not know existed!
Everyone knows a good education is key to a successful, financial future. But did you also know that a qualified student loan could also help your personal financial future?
Lifetime learning credit
Student borrowers can earn up to $2,000 with what is called a Lifetime Learning Credit? The Lifetime Learning Credit is a tax credit for students taking college classes. Students may qualify to receive up to $2,000 on the first $10,000 of college tuition and fees. To be eligible for the Learning Credit on your tax return, you, your spouse, or your dependents must be enrolled at an eligible educational institution and where you are responsible for paying college related expenses.
Student loan interest deduction
Another available tax program is the Student Loan Interest Deduction (SLID). This deduction allows for student borrowers to deduct up to $2,500 of interest paid on qualified student loans. It is important to note that this deduction is only for independent student borrowers; dependents are not eligible for the student loan interest deduction, and other assistance, such as employer contributions and scholarships, must be reduced from the total costs incurred. IRS Code (26 USC Sec. 221)
Business deduction for work-related education
For 2016, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2016, through December 31, 2016, is 54 cents a mile.
However, it is important to note that the amounts for the Lifetime Learning Credit and Student Loan Interest Deduction gradually reduces based on adjusted gross income.