Tax Tips: Tax Breaks & College

If you’re college, or if you’re putting your child through college, the IRS actually has some tax breaks for you.

FOX Business’ Gerri Willis has your FOX News Radio Tax Tip:

Don’t miss out on tax breaks for college.†

I’m Gerri Willis with your FOX News Radio Tax Tip.

It’s no wonder college students and their families are desperate for tax breaks since education debt nationally tops out at $1.4 trillion. The good news? Uncle Sam can help.

If you meet income thresholds, you can file for the American Opportunity tax credit, a $2500 dollar for dollar reduction in your tax bill. New this year, filers taking the credit will have to file a 1098-T tax form to substantiate need.†

There’s also the lifetime learning credit of $2,000. Interests on student loans can also be deducted up to $2500. Finally, there’s even a benefit for college savers:

“If you contribute into a 529 plan, your investment money grows tax free if it’s used on qualified college expenses.”

Dan Geltrude is the founder of Geltrude & Company.

Iím Gerri Willis with the FOX Business Network.

Follow Gerri Willis on Twitter:†@GerriWillisFBN
Follow Geltrude & Company on Facebook