Tax Write-Offs for a single student with low income.?

Question

I'm a student at a university and I work on campus as well. I'm a full student who has a car payment, tuition, books and barely makes $12,000. The majority of my income goes into school.

Can put my education as a tax write off? or anything of that nature. I've talked to people and they say I can't and then I talk to others and they get all of it refunded. Any one can help me? this is my third year in school and I'm barely making it through with my income. Thank you.

My parent's dont claim me. I've been claiming independent since 4 years ago. I just need to know what I can do for this year . . I'm doing my taxes next week and I need to know what I can tax deduct this year.

Answer 1

If your parents claim you as a dependent then you are not entitled to any tax breaks. They get them all. if you have any student loans, chances are those won't start accruing interest until after you graduate. So the deduction for the interest on those loans is not available to you.

You might qualify for "Earned Income Credit". One year during my undergraduate I earned very little money, like less than 10 grand. I got all of my tax money back (like $500) except for like 25 I paid to the State. There are instructions on the 1040 booklet to see if you qualify for EIC. Check it out.

Answer 2

A single person with no dependents and $12,000 of income is going to owe about $350 in taxes. By using education credits, that is all you can reduce your taxes by.

You can eliminate your tax bill by taking either Lifetime Learning Credit for tuition of at least $1,750, or by taking a Tuition and Fees Deduction of about $3500. Either one will do.

You might be eligible for a few dollars of Earned Income Credit, so check that out as well. And don't forget the Telephone Excise Credit. Both of these credits may pay you a few dollars in addition to any other refund you have coming.

Answer 3

If you're talking to people with significantly lower income than you have, then they probably do get all their withholding refunded. They don't get all their school expenses refunded unless they have a grant of some kind.

If your parents can claim you, then you can't take education credits or the Earned Income Credit.

If you're self-supporting and not a dependent of anyone, then yes, you can take the Lifetime Learning credit for your tuition (not room and board or car payment). The Hope education credit is only available for the first two years of post-secondary school, but Lifetime Learning credit is available after that.

If you are at least 25, or have a dependent child, then you'd probably be eligible for the Earned Income credit. If you're under 25 and don't have any kids, then you're not eligible for that.

Good luck. I hope your education pays off for you in the long run - sounds like you're working pretty hard for it.

Answer 4

if you parents dont claim you as a dependent then you can get a lifetime learning credit or if you havent claimed the hope credit then youll be eligible for that as well. The hope credit is used the first two years and then you can use the lifetime learning credit for ever or as long as you have educational expenses. However there is a max of 2000 and a formula that you have to go through. Also you can take a straight deduction instead of taking the credit the max on that is around 3000. However youll have to wait until feb 5 to claim those deductions.

Answer 5

If you use the taxcut software, you can declare tuituion and book expenses up to 1500 dollars on your taxes. If you are 25 or older, you can also take advantage of the Earned Income Credit. If you own a home, the interst on the mortgage is also available for deduction. Then of course, if you ahve given time to charity org., the value of that time is deductible.

Answer 6

You can take tax credits for education. It is better then deductions. For third year you can take life time credit.