Are you a student and have to do your taxes this year? We can understand your worries; even adults face problems while dong their taxes. We suggest that you should hire a reputed CPA St Cloud ,FL, and they will resolve all your problems.
When doing taxes, the main aim is to ascertain that you are paying the lowest possible amounts. We are sure you must be aware of this. But do you know how you can decrease your taxable amounts? By availing deductions and tax credits. Since you are student, the IRS is lenient to you and you enjoy an extra edge.
Here are some of the main tax breaks, which you can avail. Utilize them and you will be paying a significantly reduced amount of taxes. We will quickly go through the main points, and you can ask your chosen CPA St Cloud ,FL for the details.
The American Opportunity Tax Credit
As a student, this is the biggest tax credit you can avail, but this will only be so if you are in the first four years of college. Doing so can help you in reducing your taxable amounts by as much as $2,500. Like with all tax credits, an eligibility criterion has to be met. Your adjusted gross income or AGI must not be more than $80,000. If you are idling jointly, this limit is raised to $160,000.
The IRS states that for the first $2,000 which you spend on your fees and course materials, you can deduct it as it is. For the ext $2,000, which you will be spending, you will be deducting 25% of the amounts.
Please note that this tax credit is partially refundable. This means that you can get some pay of the credit even if you are not paying taxes. To make your please consult your CPA in St. Cloud, FL
Lifetime Learning Tax Credit
The American Tax Credit can only be claimed when you are in college or university. What about the rest of your student life? You have the lifetime learning tax credit for this. Anytime in your life, you can avail this as long as you are student, but there will be a catch involved. You can get this credit only of you spend more.
The lifetime learning credit will provide you a maximum reduction of $1,000 from your taxable income. For every dollar that you spend, you are allowed to deduct 20 cents from your taxes.
Tuition Fees Deduction
There is a difference between tax credits and deductions with the former being a better choice. Credits directly reduce your taxes, whereas deductions decrease your taxable income. As such, credit have a more pronounced effect, but this does not mean that you can let your eligible deductions go to waste. To make you’re your are getting the most deductions, see advice from a CPA in St. Cloud, FL.
Among the available deductions, a good one is the tuition fees, which reduces your taxable income by $4,000 at the most. In order to be eligible, your income levels must be less than $65,000 if you are filing single or $130,000 if you are married and filing jointly. You also must not have availed any of the above tax credits.
If you need more information about our St. Cloud, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are NOT CPA’s. CPA services provided by third party provider.)