Tax time is the worst. Unless, of course, you have student loans. Then graduation and repayment is the worst. I cannot tell you how often I read and hear people say that if they only knew the true cost of student loans before they used them to get through college, they never would have applied for them. Amen. They are costly. However, if you are worried about tax time and your student loans, we have a few tips that might make the burden seem a bit less. We can help you use your student loans to lower your tax liability and hopefully help you get a refund (that you can apply toward paying off those student loans so you can become debt free that much faster).
Stay in School
For one, this is going to allow you to take advantage of education credits on your income tax return. This allows you to save more money and it actually puts money in your pocket. If you’re still learning, keep it up. Don’t stop now. Make those days of being a student pay for you.
Deduct Your Books
You can actually keep track of all that you pay for books for class on your income tax return. Keep those book receipts and use them to lower your tax liability and hopefully get a refund. We recommend taking that refund and then paying off a student loan or two when you get the chance.
Deduct Student Loan Interest
If you are no longer in school and that dreaded moment in which you have begun repaying those costly student loans has arrived, you can at least deduct a bit of that. Keep your tax statements as they come in the mail and check to see how much interest you paid on your student loans. As long as you make less than $80,000 per year, you can deduct that interest and lower your tax liability just a bit.
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