Tax Incentives for Returning to School
If you've recently returned to school, there are a few key tax incentives that you're going to want to remember come tax season. Find out about tax incentives for returning to school with help from a CPA and partner at Safe Harbor, LLP in this free video clip.
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Hi I'm Chun Wong, a CPA and partner at Safe Harbor, LLP, a tax and audit firm based in San Francisco, California. Today's topic is on tax incentives for returning to school. Many people returning to school in today's brutal job market to increase their ability to get a better job. Uncle Sam is ready to help in the form of either a tax credit or the ability for these returning students to take a deduction on their tax returns. The best incentives are the American Opportunity Credit which provides a maximum credit of up to $2,500 and the lifetime credit which provides a credit of up to $2,000 for any type of post graduate type of education. But still more good news if a returning student is not eligible for these credits, due to income limitations, they can still be able to take a deduction of up to $4,000 if married filing jointly or $2,000 if married filing separately for qualified educational expenses. Qualified expenses include tuition, enrollment fees, books and supplies that are directly purchased from the school. A good source for additional information on these education credits or the deductions allowed can be obtained by visiting the IRS website at www.irs.gov or emailing us at email@example.com.