Last week I wrote an article about taking advantage of education benefits and deductions for your taxes. With the tax deadline of April 15 quickly approaching, I thought a few more tips to save the most on your tax return was in order. So without delay, here are more ways to take advantage of education benefits and tax breaks for students.

If your employer is cool enough to agree to reimburse you for a course you take, up to $5,250 of that income is tax free. The Employer Education Assistance benefits must have been used for the usual college expenses: tuition, fees, books, and supplies. Other expenses such as travel, housing and food are not included. And courses involving sports, games or hobbies are not included, unless they are required as part of a degree program or are related to the business of your employer. If payments above $5,250 have been made, these may also be tax-free if they represent a working condition fringe benefit. This means that if you had paid for the expenses, you would have been able to deduct them as an employee business expense. Read more…

If you are a student and you are doing your taxes this year, there are a few things you should know before you start. Did you know you can get federal tax breaks on education related expenses? These benefits exist, you just have to know about them. By being available to part-time, full-time, married students and parents of dependent students, these benefits and credits can save you a nice chunk of cash when you go to the taxman this year. Read more…

Ah. Tax season. That magical time when everyone is usually miserable because they put off doing their taxes till the last possible minute. If you are a student you may not need to worry since your parents may claim you and file your taxes with theirs. But, the unlucky ones, may have to do some prepping and planning of their own. Take heed students and recent graduates: this year take your taxes in early but before you do here is what you need to know.

Before you start gathering your paperwork, check with your parents. They may claim you as a dependent. If your parents claim you as a dependent and you file separately by accident, expect a nice letter the IRS asking that either you or your parents amend the returns. Read more…