Many families overlook these benefits each year due to confusion surrounding tax credit options.
WASHINGTON (PRWEB) March 28, 2018
Tax day is fast approaching, but with extra time to submit this year, parents and students can breathe easy! Traditionally, taxes are due on April 15 each year. But because tax day falls on a Sunday, this year taxes aren’t due until Tuesday, April 17, giving families even more time to explore higher education tax benefits that could shave thousands off their 2018 tax bills.
The National Association of Student Financial Aid Administrators' (NASFAA) new “2017 Tax Year - Federal Tax Benefits for Higher Education” guide can help. It explains the tax credits and deductions available for the 2017 tax year and can help taxpayers determine if they are eligible for current incentives, including:
- 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.
- The Lifetime Learning Tax Credit: This credit provides up to $2,000 per tax return and is non-refundable.
- The Tuition and Fees Tax Deduction: This deduction can reduce a taxpayer's taxable income by as much as $4,000.
- 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.
In addition, NASFAA’s tax benefits guide provides new information on overall income eligibility requirements for certain credits and deductions.
“Due to strong advocacy from the higher education community, education tax credits that could save families thousands were preserved in Congress’s overhaul of the nation’s tax system,” said NASFAA Vice President of Policy & Federal Relations Megan Coval. “Still, many families overlook these benefits each year due to confusion surrounding tax credit options. As the cost of obtaining a higher education continues to increase, we encourage parents and students to take every opportunity to educate themselves about their finances and take advantage of benefits that can help ease the financial burden of paying for college.”
NASFAA policy experts and financial aid administrators can discuss education tax breaks that can benefit students and their families. For more information, contact NASFAA Director of Communications Erin Powers to set up an interview.