More College Tax Breaks and Education Benefits

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…