“If you or your child is enrolled in higher education, you owe it to yourself and your finances to understand your tax options.” - NASFAA President Justin Draeger
Washington, D.C. (PRWEB) March 02, 2015
Millions of families save more than $1,000, on average, through higher education tax breaks during filing season—but many others needlessly miss out.
Approximately 11.5 million U.S. taxpayers claim the American Opportunity Tax Credit, one of several options when filing taxes. On average, those families save $1,100, according to the U.S. Treasury, but hundreds of millions of dollars more go unclaimed, due in part to complexity surrounding the options.
A new resource from the National Association of Student Financial Aid Administrators (NASFAA) can help. “Federal Tax Benefits For Higher Education,” a guide created by financial aid experts, explains the tax credits and deductions available for the 2014 tax year. The resource is free and can help taxpayers determine if they are eligible for current incentives, including:
1. The American Opportunity Tax Credit: This credit provides up to $2,500 per student and up to 40 percent of the credit may be refundable.
2. The Lifetime Learning Tax Credit: This credit provides up to $2,000 per tax return and is non-refundable.
3. Tuition and Fees Tax Deduction: This deduction can reduce taxable income by as much as $4,000.
4. Student Loan Interest Deduction: This deduction allows a taxpayer to deduct interest paid on student loans of the taxpayer, a spouse, or dependents, and can reduce taxable income up to $2,500.
“Every year students and families leave money on the table by not applying for tax credits for which they are entitled,” NASFAA President Justin Draeger said. “If you or your child is enrolled in higher education, you owe it to yourself and your finances to understand your tax options.”
NASFAA policy experts and financial aid administrators can synthesize complex tax information and can also speak to the current political climate surrounding higher education tax benefits. For more information, contact us at 202-785-6959 or firstname.lastname@example.org to set up an interview.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 20,000 financial aid professionals at nearly 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every ten undergraduates in the United States. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit http://www.nasfaa.org.