Like millions of Americans each year, students must file their taxes. And like everyone else, they are on the lookout for deductions that can reduce the amount they owe. Students are privy to a number of tax deductions that others cannot claim. Deducting rent from taxes, however, is likely not one of them. Review the following stipulations to see if your rent qualifies as tax deductible.
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Student Housing
Under no conditions can rent paid for student housing be deducted from Federal taxes.
Renter's Credit
Some states, such as California and Maryland, offer a renter's credit that allows you to deduct a portion of your rent on your state taxes. Each state has a number of requirements. Check with your state's website to see if you qualify.
Business Expections
If you are a part-time student and work from your home full time, you may be able to deduct rent on your tax return, but only for the portion of the home used for business. Estimate the square footage of your home and divide that number by the square footage of the room used for business. The result is the percentage of rent you can deduct.
Warning
If you are self-employed and want to deduct a portion of your rent on your taxes, remember that a room must be used solely for work and not for personal use to qualify for deductions.
Other Deductions
Even if you can't deduct your rent or housing expenses as a student, you may deduct tuition expenses or interest paid on student loans, which may result in a sizable savings.
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