How Students Can Take Advantage of Tax Deductions and Credits

While public higher education is mostly a state responsibility, the  federal government does incentivize continuing education through tax  deductions and tax credits.

We’ve gathered 7 tax deductions and credits you should know to save the most money on your tax bill this year.

Regardless of how you choose to invest, the tax code awards this  behavior by offering you the ability to deduct your contributions from your taxable income.

Retirement Account Contributions (IRA)

When you choose to sell your losing positions, you can harvest these tax losses to lower your taxable income.

Capital Gain Losses

You may have the ability to claim the American Opportunity tax credit (AOTC) to lower your tax bill dollar-for-dollar.

American Opportunity Tax Credit

The Lifetime Learning Credit can help pay for undergraduate, graduate, or professional degree courses.

Lifetime Learning Credit

If you aren’t claimed as a dependent on someone’s tax return in 2020, and you didn’t receive a check, you could claim the Recovery Rebate Tax Credit on your return.

Recovery Rebate Tax Credit

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