This Is One Education Tax Credit You Don’t Want to Miss
These days, we're hearing a lot about how the IRS will be sending out another round of economic stimulus payments — but we still have to worry about the good ole regular income tax returns, too.
And, of course, we want to make sure you receive the biggest refund to which we're entitled. That's why we turned to Nikali Luke, a partner at Simplified Tax and Accounting, who shared details about one of his favorite tax credits.
The American Opportunity Tax Credit is one of my favorites. It is a 100 percent credit for the first $2,000 of qualified educational expenses. It maxes out at $2,500 and a portion of the credit is actually refundable, which is very rare in the tax code.
It's also important to note that if you are claiming the student, you are allowed to take the credit even if you didn't personally pay the education expenses. So if grandparents helped pay for school or if a loan was used, you are still allowed to take the credit this year.
If you'd like to work with a tax specialist to make sure you capture all the credits and deductions available to you, call Simplified Tax at 517-882-2441 or visit simplifiedtax.com. They have eight convenient locations throughout the region to serve you!