An overview of taxes and college by John B. Barry, CPA, P.A.
1. Review the education tax credits (Click for more information):
• Lifetime Learning Credit
• Tuition and Fees Deduction
2. Track all of your education activity:
• Tuition payments
• Book, supplies, equipment and computer
• Personal payments
• Student loans
3. Determine who will claim the credit:
• If you qualify as a dependent on your parent(s)
return then they would claim the education credits.
• If you provided for more than half your support and
made more than the personal exemption ($4,050 – 2016)
then you would claim yourself and the education credits
on your own return.
4. If you have student loans and are paying interest:
• Student loan interest is deductible.
• The amount you paid is generally reported on Form 1098-E.
• If you paid less than $600, you may not receive Form 1098-E.
You will need to call your loan servicer for the exact amount.
• The loans associated with the student loan interest must have
been used for qualifying higher education expenses.
• You paid interest on a qualified student loan in the current tax year.
• You’re legally obligated to pay interest on q qualified student loan.
• You can’t be claimed as a dependent on someone else’s return.
5. File a return:
• If you work a part-time job, Federal and or state income tax may be
withheld from your paycheck.
• Federal and state income taxes are potentially refundable.
• You must file a return to claim your refund.
• If you claim yourself on your return, you must file to claim
any qualifying education credits.
• When it’s time to file your return, check with
John B. Barry, CPA, P.A. for discounted or free
tax return preparation.
We are available all year to answer any tax, retirement or other general financial questions you may have.
johnbarrycpa.com • Twitter • Facebook • email@example.com • (828) 264-5500