Many people dream of getting an education later in their
life. Whether it’s because other obstacles prevented them from ever going to
school in the first place or because they didn’t complete their schooling the
first time around, the fact of the matter is that going back to school is a
wonderful thing, one that can be made even more wonderful, at least from a
financial standpoint, by taking advantage of all of the financial tax credits and deductions that are available.
The American Opportunity Tax Credit
If you’ve never been to school in your life or if you never
completed school, then you can qualify for the American Opportunity Tax Credit,
a wonderful credit that gives you money for your first four years of schooling.
Depending upon your circumstances, you can actually receive as much as $2,500!
That’s a pretty nice way to make it through school.
Of course, if you’ve already done your four years, this
credit doesn’t apply, but if you haven’t and your income is within the (very
reasonable) tax bracket, it’s typically yours for the taking. If you think you
qualify for this awesome credit, talk to your financial adviser to learn how to
get it!
The Loan Interest Deduction
Many people who make the smart decision to go back to school
end up taking out student loans. And, while that may not seem like such a great
thing to do, it can be if you are wise enough to deduct the interest on them,
which can save you a big bundle of money in the long run.
In fact, depending on your circumstances, you could
potentially deduct as much as $2,500 on interest paid, so if it starts seeming
like student loans are your best bet, talk to your tax adviser about this
option.
Obviously, going back to school is a great thing, one the
government makes every effort to help you out with! To learn more about other
ways to save and benefit from heading back to school, find an accountant, and
talk about these and many other excellent options that exist.
