What are some item that can be deducted for tax if you are a college student?

Question

I am currently in college. I just started my second quarter and realized that books and supplies cost an arm and a leg, perhaps even my own life. Hahaha...
Anyway, I know that tax season starts around March 08, what are some items that I can put as deduction? Should or should I not make an itemized tax report as a college student? Why or why not? I want to maximized my return since art school is pretty expensive and I only make under $14,000 a year. I live in an apartment and I think I will be getting a disability soon. What should I do with my taxes?

Answer 1

If you are not a dependent you may be able to receive 1 of 2 credits OR a deduction from income (you can take whichever one works out better). If you qualify as a dependent, your parents may be able to take 1 of the 2 credits OR the deduction. IMPORTANT: This is one of the only times you can take yourself as a dependent even if you qualify as a dependent of your parents if the credit/deduction works out better that way. You must coordinate with your parents (obviously they can't take you as a dependent then). Learned of this at a CPA conference last year, also see bottom of page 13 at:
http://www.irs.gov/pub/irs-pdf/p970.pdf...

Typically only tuition and fees qualifies (not housing or books), and there are income limitations.

Here's a chart that may help:
http://www4.nau.edu/bursar/irschart.htm...
And a link to the official IRS publication:
http://www.irs.ustreas.gov/publications/...

Also, if you cashed in savings bonds to pay for your education you may be able to exclude the interest from your income (but you can't do this AND take the credit/deduction, and only certain bonds are eligible).

Also, if you or your parents cashed in an individual retirement arrangement (IRA) to pay for your education there may be some breaks (but again you can't do this AND take the credit/deduction).

Answer 2

Books and supplies aren't deductible, but you can take an education credit for your tuition and fees - if your parents can claim you as a dependent, then they get the credit instead of you getting it.

You probably don't have enough deductible expenses to itemize. You automatically are allowed a standard deduction of $5350 without having to show any detail, and would only itemize if your allowable deductions were over that - you can take itemized deductions or standard, not both, so you'd take whichever is the higher amount. Download 1040 schedule A from irs.gov to see what items can be deducted. Some examples are medical and dental expenses that are over 7.5% of your income, state and local taxes, and charitable contributions.