Spring Break
Filing taxes saves students money
Caleb Fort
Issue date: 2/22/07 Section: News
by Caleb Fort
Daily Lobo
Filling out a tax return might be less fun than taking a midterm.
But taking a midterm doesn't save students money.
College students can get money back from taxes by taking advantage of educational credits and deductions, said Liz Kennedy, a spokeswoman for Sallie Mae, a student loan company.
"Taxes can be very confusing," she said. "A lot of college students are filling out taxes for their first time, or close to it, and they're not thinking about looking for ways to save money. The onus is on the taxpayer to educate themselves."
In 2006, 9 million people who filed taxes claimed an educational deduction or credit and saved an average of $668, she said.
About 27 percent of taxpayers who are eligible for the deductions do not claim them, she said.
"By putting in a little bit of extra effort, you can get a good amount of extra money," she said.
There are two deductions and two credits for college expenses.
A deduction reduces how much income is taxable. A credit counts against the final amount of taxes due.
Tuition and fees deduction
This deduction is based on how much a student spent on tuition and fees. The deduction is up to $4,000 per year.
The 1098-T form, which is sent out by universities, lists how much a student paid for school. Tuition and fees paid for by scholarships do not count for this deduction.
Money paid for housing is also not eligible.
The maximum income for single taxpayers to qualify for the deduction is $65,000.
"Maybe there are some students who are making that kind of money," she said. "But I sure didn't know any when I was in college."
Student loan interest
deduction
This deduction applies to students who are paying interest on a student loan. The deduction is good for up to $2,500 per year.
The 1098-E form shows how much interest a student has paid. The deduction does not count for payments toward the principle of the loan.
Daily Lobo
Filling out a tax return might be less fun than taking a midterm.
But taking a midterm doesn't save students money.
College students can get money back from taxes by taking advantage of educational credits and deductions, said Liz Kennedy, a spokeswoman for Sallie Mae, a student loan company.
"Taxes can be very confusing," she said. "A lot of college students are filling out taxes for their first time, or close to it, and they're not thinking about looking for ways to save money. The onus is on the taxpayer to educate themselves."
In 2006, 9 million people who filed taxes claimed an educational deduction or credit and saved an average of $668, she said.
About 27 percent of taxpayers who are eligible for the deductions do not claim them, she said.
"By putting in a little bit of extra effort, you can get a good amount of extra money," she said.
There are two deductions and two credits for college expenses.
A deduction reduces how much income is taxable. A credit counts against the final amount of taxes due.
Tuition and fees deduction
This deduction is based on how much a student spent on tuition and fees. The deduction is up to $4,000 per year.
The 1098-T form, which is sent out by universities, lists how much a student paid for school. Tuition and fees paid for by scholarships do not count for this deduction.
Money paid for housing is also not eligible.
The maximum income for single taxpayers to qualify for the deduction is $65,000.
"Maybe there are some students who are making that kind of money," she said. "But I sure didn't know any when I was in college."
Student loan interest
deduction
This deduction applies to students who are paying interest on a student loan. The deduction is good for up to $2,500 per year.
The 1098-E form shows how much interest a student has paid. The deduction does not count for payments toward the principle of the loan.
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rakia_j
rakia
posted 3/05/07 @ 2:10 AM MST
dear sirs
i am working in jordan but the slary is very cheap i can pay just my rent room and transportation
i am from iraq my age 31 age i need to improve my langusge english to study at bond university in austuralia
how can you help me i am ready to work and study i need some one help just the first step i am ready to sighn any docs pls i need to bulit self my self how can you advise me
my best reg
rakia jaber
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