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.