3 tax breaks every US college student should know about

Taxes are due on Monday, April 15.If you attended undergraduate, graduate, or professional school in 2019, or you're repaying a student loan, you may be eligible for a tax break.The IRS offers tax deductions and tax credits for college students and parents that either reduce taxable income or lower your tax bill.This post has been reviewed for accuracy by Thomas C. Corley, CPA.See Business Insider's picks for the best tax software Tax credits and tax deductions for college students can help offset the cost of school or repaying a loan.Credits and deductions can help you pay less income tax by lowering your tax liability dollar-for-dollar, or reducing your taxable income.You can use these credits and deductions for yourself, if you're currently a student, or for your spouse or a dependent child if they are the one in school. College students can only claim one tax credit a year, but parents supporting more than one child in college can claim tax credits, in some cases, on a per-student basis.American Opportunity CreditWith the American Opportunity Tax Credit, taxpayers are eligible to claim a credit of up to $2,500 for the first four years of post-secondary education for tuition and fees, course-related books, supplies, and equipment. Couples filing jointly whose adjusted gross income (AGI) is less than $160,000 and single filers whose AGI is less than $80,000 are eligible to claim the credit for each student in the family.The benefit begins to phase out for joint filers who earn between $160,000 and $180,000, and for single filers who earn between $80,000 and $90,000. The credit is not available to taxpayers who are married but file separately.And since 40% of the credit is refundable, that means filers can get back up to $1,000 of the credit as a refund (if the taxpayer is not subject to kiddie tax).Lifetime Learning CreditThe Lifetime Learning Tax Credit allows students of undergraduate, graduate, and professional degree programs with an AGI below $58,000 (single filers) or $116,000 (married, filing jointly) to claim up to a $2,000 non-refundable tax credit for education-related expenses on a per tax return basis. The credit is not available to taxpayers who are married but file separately.Joint filers who earn more than $116,000 but less than $136,000, and single filers who earn between $58,000 and $68,000 are still eligible, but the benefit is gradually reduced.While the IRS does not allow taxpayers to claim both the Lifetime Learning Credit and the American Opportunity Credit for the same individual in the same year, both can be claimed on a single tax return where two students qualify individually.Student-loan interest deductionIf you've taken out a federal or private student loan, you're eligible to deduct up to $2,500 worth of interest paid on the loan as an "above-the-line" deduction from your gross income. You don't have to itemize your deductions in order to claim it, but you cannot be a dependent on another person's tax return.Taxpayers with a modified adjusted gross income (MAGI) below $70,000 if single or $140,000 if filing jointly, are eligible for the full deduction. The allowable deduction will phase out if you're a single filer with a MAGI above $70,000 and below $85,000 or a joint filer with a MAGI above $140,000 but below $170,000.More tax day coverage:When are taxes due'How to file taxes for 2019What is a tax credit'H&R Block vs. TurboTaxJoin the conversation about this story
Click here to read full news..