Tax Benefit for Parent(s) of College Students

You can get a tax credit if you have a child in college—yes, a tax credit, not just a deduction! Check out the American Opportunity Credit. It’s worth a $2,500 discount on your tax bill.

How? Well, you have to spend $4,000 a year on college related expenses: tuition, books, supplies, and equipment. How hard is that??

Other eligibility requirements include
• You must claim your child as a dependent and
• Your income can not exceed $90,000 a year (if you are single) or $180,000 a year (if you are married). Note: the discount is reduced starting at $80,000 for singles, and $160,000 for married parents.

This credit is good four years. So, tell junior to earn that degree in the allotted time, and discourage graduate school.

Share this article

Comments are closed.