Summer is almost through, and that means one thing—back to school season is approaching. Beyond running to your local superstore for school supplies, getting your kids back into a regular sleeping pattern, and heading out on your last summer vacation getaway, there’s one more thing to consider: your child’s college savings plan. Saving up and paying for college happens over a lifetime, from the moment a little one is born until well after they’ve received that diploma. The cost of a college tuition in the United States is anything but cheap, but the government has created some tax benefits for parents and students looking for ways to afford a college education.
Understanding the different ways you can save for your child’s education and simultaneously get a tax deduction or credit from the government is essential, whether they’re graduating high school next year or they’re still in diapers. We’ve taken a look at the various tax benefits and programs the IRS and U.S. government provides for searching parents and their studious kids and compiled it all in an easy to read infographic that lays out the best ways to start saving for that degree.
When it comes to college tax credits, two names should come to mind: The American Opportunity Tax Credit and the Lifetime Learning Credit. Each have their own set of parameters and stipulations, but both have served thousands of families well when it comes to saving and paying for a college education. If you’re already paying college tuition, it’s important to know exactly what to deduct. Ignorance means missing out on some lucrative savings, and using these tax benefits to your advantage is the best way to play it smart.
Understanding what forms you need and when to file can be tough, but this informative infographic lays out all the details necessary for bolstering that college savings account in no time. Whether you’re a student looking for ways to start funding your college career or a parent saving up for your little ones’ futures, understanding these education tax benefits is your best place to start.
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