Filing taxes as an independent adult for the first time can feel intimidating. However, with some knowledge and professional tax preparation help, you can complete this process successfully. Below is more information about a few deductions you can take as a college student to increase the amount of your refund.

What Tax Breaks Should Students Know?

1. Lifetime Learning Credit 

This tax credit enables students with an adjusted gross income (AGI) below $58,000 if they are single or $116,000 if they are married and filing jointly to claim up to $2,000 for education expenses. The credit does not apply to students who are married but file separately. Also, filers who earn over the stated amounts can claim a reduced credit. This allows you to offset some of the costs that you incur while attending school, such as for transportation to and from class.

2. American Opportunity Credit

With this deduction, you can get up to $2,500 toward expenses for books, tuition, fees, and school-related supplies during the first four years of post-secondary education. The credit is available to single filers with an AGI of less than $80,000 and married filers with an AGI of less than $160,000.

The benefit diminishes as you earn more income. If you’re close to qualifying for any education-related tax credit, speak with a tax preparation professional to better understand the requirements. 

3. Tuition & Fees Deduction

This deduction allows you to shield up to $4,000 of taxable income if you incur any college-related expenses for yourself, a spouse, or a dependent. People with a modified adjusted gross income (MAGI) of less than $65,000 or $130,000 are eligible for this credit. If you need help understanding the differences between your AGI and MAGI, consult with a tax preparation professional for clarification.

4. Student Loan Deduction

If you’re paying interest on a student loan, you shouldn’t miss out on this deduction. Under current tax rules, you can deduct up to $2,500 worth of paid interest from your gross income. This deduction is available to single filers with a MAGI under $70,000 and married joint filers with a MAGI of less than $140,000. This will ensure that you get the most money possible on your tax return, helping to offset the cost of the loans.

If you are starting the tax preparation process and need help understanding your options, contact PMC Tax Services LLC in Lincoln, NE. They have been helping people across the state file their taxes since 1989. Their knowledgeable team members can work with all kinds of individuals and businesses. Call (402) 467-5529 to schedule a consultation. Visit them online for more information about their services.