Yusra3
VIP Contributor
College students should file income tax returns each year. Even if you don’t earn much, you may be eligible for refundable tax credits. Here are scenarios where students may receive sizeable tax refunds:
American Opportunity Tax Credit
Students whose families earn below $90,000 may qualify for up to $2,500 back. Calculate using Form 8863.
Lifetime Learning Credit
Worth up to $2,000 for single filers making under $68,000. Learn limits for this education credit.
Student Loan Interest Deduction
You can deduct up to $2,500 in student loan interest if income is under $70,000.
Tuition and Fees Deduction
This above-the-line deduction reduces taxable income up to $4,000.
Earned Income Tax Credit
Students working part-time may receive this income supplement of up to $6,557.
Recovery Rebate Credit
If you didn’t get stimulus payments already, filing taxes could release this money.
Withholding Error
If too much tax was withheld from campus or side jobs, filing gets you that money back.
Parents can also claim the American Opportunity Credit for students they support financially. Consult IRS Publication 970 for details on education-related tax breaks. Use the IRS’s Withholding Calculator to check your tax payments are accurate. Don’t leave money on the table - file your taxes to collect refunds owed!
American Opportunity Tax Credit
Students whose families earn below $90,000 may qualify for up to $2,500 back. Calculate using Form 8863.
Lifetime Learning Credit
Worth up to $2,000 for single filers making under $68,000. Learn limits for this education credit.
Student Loan Interest Deduction
You can deduct up to $2,500 in student loan interest if income is under $70,000.
Tuition and Fees Deduction
This above-the-line deduction reduces taxable income up to $4,000.
Earned Income Tax Credit
Students working part-time may receive this income supplement of up to $6,557.
Recovery Rebate Credit
If you didn’t get stimulus payments already, filing taxes could release this money.
Withholding Error
If too much tax was withheld from campus or side jobs, filing gets you that money back.
Parents can also claim the American Opportunity Credit for students they support financially. Consult IRS Publication 970 for details on education-related tax breaks. Use the IRS’s Withholding Calculator to check your tax payments are accurate. Don’t leave money on the table - file your taxes to collect refunds owed!
