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As a dissertation student, the only way to make higher education more affordable is by getting all the breaks you need. In a bid to give students some relief, the government came up with education tax credits. If you’ve always been interested in tax credits and how you can claim them to reduce your dissertation expenses, this article is for you.
Defining education tax credits
Have you ever heard of tax credits? If not, here is a brief definition – an item that allows you to get refunds, thus reducing the amount of money they owe on your return. You qualify for a refund if your tax bill is reduced to less than zero by your tax credit. Once you get your money, you can use it to purchase study materials or for dissertation expenses. As a university student, you don’t have to struggle with your dissertation if you neither have the time nor the skill to write it. While you’ve probably written a lot of essays in the past, they are nothing compared to a dissertation. Since your paper has to have an engaging start, you need to find someone who is capable of writing a dissertation introduction from a reputable platform. There are a lot of professionals who offer dissertation online help to ensure that you save time and achieve your academic goals.
Can you claim education tax credits?
Every type of education tax credit has unique eligibility requirements. However, there are a few important guidelines that you have to meet before claiming tax credits. They include:
- You must cater for education expenses associated with college, such as student activity fees or tuition
- You must be enrolled at a recognized educational institution. This means that your learning institution should be part of a student aid program run by the Department of Education
- You or any other individual listed on your tax return are eligible. This means that you won’t be eligible to claim education tax credits if you are paying tuition for an individual who is not a dependent.
At the moment, there are two types of tax credits for higher learning expenses. They include:
- American Opportunity Tax Credit
You can only claim this type of tax credit in the first four years of college education and get up to $2500 in annual credit. If your credit is reduced to zero by your tax bill, you should expect to get a maximum of 40 percent of the remaining amount as a refund. Here are the eligibility requirements for American Opportunity Tax Credit:
- You are pursuing a recognized credential such as a degree
- You are not through with the four years of higher education
- You haven’t been convicted of drug abuse
- You haven’t claimed this tax credit for more than four years
- Your gross income is not more than $90000
- Lifetime Learning Credit
Lifetime Learning Credit has no limit on the number of years that you can claim. You can use it to reduce the cost of a professional degree, undergraduate and graduate courses. If it reduces your tax bill to zero, you won’t get a refund. You can only claim Lifetime Learning Credit if you meet the following requirements:
- You are taking courses or enrolled at a particular learning institution
- You are taking a course to develop job skills, get a degree or a recognized credential
- In the tax year, you have enrolled for an academic period or more
Other tax benefits associated with education costs
Student loan interest deduction
Most of the learners in the US have student loans. If you are one of them and you are making your payments, you can easily deduct a portion or the entire interest that you’ve paid during the year. You can either deduct the amount of interest that you paid or 2500 bucks (the lesser option). The deduction qualifies for both private and federal student loans. To qualify for the credit, you don’t have to itemize your deductions. You have to be legally obligated to repay the loan to qualify for this deduction.
There are a lot of educational tax credits available for college students to help them reduce phd taxation. You need to know which one is ideal for you to reduce your Ph.D. tax and have an easy time studying. Keep in mind that you cannot take multiple education benefits at the same time If you don’t know what you should claim, consider getting help from a professional accountant or your tutor. Continuing education tax deductions can help you reduce your tuition fees and save a lot of money in the long run.