taxtips

Are you a student or a teacher? If so... this tax tip is for you!

FOX Business Network's Tracy Byrnes reports in "Tracy's Tax Tips":

Good news if you're a student or teacher: the education deductions have been extended to 2014.

I'm Tracy Byrnes with the Fox Business Network, here with Tracy's Tax Tips.

So if you're paying for school, make sure you check out the American Opportunity Credit. Students in their first four years of higher ed. may qualify for as much as $2,500. Now, there are also extra deductions for your loan interest and tuition-related expenses. However, like most of these deductions, the amount decreases as your income increases.

Now, even students who file themselves and owe no tax may get up to $1,000 of the credit refunded per eligible student. Just make sure you walk through and file FORM 8863, that's the Education Credits, and attach it to your return.

Oh and if you're a teacher, you can still write-off up to $250 in out-of-pocket expenses for books and other supplies. Considering a recent survey found teachers spend $485 out-of-pocket on  supplies, the extension will be a welcome deduction.

I'm Tracy Byrnes, FOX News Radio.

CLICK HERE for more of Tracy's Tax Tips.

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