Tax Form Arrival Dates

w2 tax form

Tax season is here, and you’re probably still waiting for W-2, 1099, and other tax reporting forms to arrive in the mail. You may have received some. It’s still early, though, and there’s no reason to panic. Most forms aren’t even due yet. For example, Form W-2 is due on January 31 every year.

w2 tax form

So long as the form is addressed and mailed on the due date, it is considered on time. Companies must issue your W-2 by then, unless the date falls on a weekend or legal holiday. Taxpayers are often stressed if they don’t get the proper tax form by the deadline. If they don’t, here are a few steps to take.

  • Check to see if the form is in the mail, on a counter, or sitting around somewhere. If there are any piles you haven’t sorted through, check for the W-2 before resigning to the fact it wasn’t sent.
  • Look in your email inbox. It’s good idea to check the spam filter too. Electronic versions of tax forms must be created with your consent. Otherwise, a paper copy must be sent as well. You may have authorized electronic delivery and not recall, so always look at your inbox.
  • Contact the issuer directly if you’re sure the forms didn’t arrive. If your address is incomplete or you moved, the form might not get to its destination. Forms can also get lost in the mail. Contact the employer and they’ll send another one.
  • Attempt to get in touch even if the employer closes or moves. Send your correspondence to their last known address, and their local post office will likely forward the mail. Searching for the employer on the Internet is a quick way to find their address.

If you still can’t find your tax forms, or there are mistakes, contact the IRS. Note, however, there is a wait time. The IRS doesn’t respond to missing form communications until after February 14. You can then call them at 1-800-829-1040. They’ll need your address, telephone number, and Social Security Number. Also keep handy your employment dates and estimated earnings/federal withholding amounts – found on the last pay stub you received. It’ll save time if you gather all the details in advance of the call. After a long hold time, it is quite frustrating to find out you need to call again later with the right details.

Once you contact the IRS, resolving the issue can take time. The agency will send Form 4598, Form W-2, 1098, or 1099 Not Received, Incorrect, or Lost to the employer or other issuer of the form. A copy of it will be sent to you. You’ll also get Form 4852, Substitute for Form W-2 or Form 1099-R.

The employer should send the form quickly. If it doesn’t fall into your hands by April 18, you can file Form 4852, but be sure you have a good reason to. You may be severely penalized by the IRS if you use the form improperly. In any case, tax refunds will take longer to arrive. it takes longer for the IRS to verify information with Form 4852.

For the due dates of other tax forms, see the list below.

1042-S: Foreign Source Income Reporting. Due March 31

1094-C, 1095-C: Affordable Care Act. Due March 31

1098: Home mortgage interest. Due February 1

1098-E: Student loan interest. Due February 1

1098-T: Tuition, reimbursements, scholarships, grants. Due February 1

1099-B: Sales, barters, and redemptions of securities. Due February 15

1099-C: Cancellation/forgiveness of debt income (including mortgages). Due February 1

1099-DIV: Dividends, capital gains, and distributions. Due February 1

1099-G: Government payments (tax refunds, unemployment compensation). Due February 1

1099-INT: Interest income. Due February 1

1099-K: Credit card payments in course of trade or business. Due February 1

1099-MISC (Rents): Rents, royalties, prizes, awards, non-employee compensation. Due February 1

1099-MISC (Attorney’s fees): Attorney’s fees and substitute payments. Due February 15

1099-R: Retirement plan distributions, such as IRAs and profit sharing plans. Due February 1

1099-S (Real Estate): Real estate sales information. Due February 15

1099-SA (Distributions): HAS, Archer MSA, or Medicare Advantage MSA distributions. Due February 1

SSA-1099: Social Security payments. Due February 1

W-2: Wages, sick pay, and benefits. Due February 1

W-2G: Gambling winnings. Due February 1

Exceptions to reporting requirements include forms that are issued earlier. A 1099-INT form, for example, may be issued at the time you redeem savings bonds. Also, you would have received form 1098-C within 30 days of selling or donating a car.

In addition:

  • Traditional IRA, Roth IRA, SIMPLE, or SEP contribution details are scheduled to arrive by May 31. For Coverdell ESA contributions (form 1099-ESA), it is April 30.
  • It’s rare to report taxes early if you are a shareholder/partner/member of an LLC, LLP, or S corporation. Tax returns must be prepared before Schedules K-1 are furnished. These can take until March or April to arrive.

Make Sure All Tax Reporting Forms Are On Hand

If you haven’t received all tax reporting forms, do not file yet, even if you’re pretty sure of what’s on them. It will be more difficult for preparers to figure things out. Also, the IRS requires electronic returns to be submitted only after forms W-2, W-2G, and 1099-R are received.

The IRS may also audit you if taxes are filed before the proper forms are available. It must match the information on your tax return with forms such as W-2 and 1099. Otherwise, the return will be flagged. The IRS will take another look if there’s anything that looks different than it should.

We recommend that you file your income taxes with TurboTax online because they will import your W-2 information into the correct form to insure that tax filing is as easy as possible. By going with Turbo Tax you decrease, the chances of your tax return containing errors and they guarantee that you will get the largest refund ever or pay the minimum amount of taxes possible.

How to Get Your W2 Form Online

Tax season is now in full swing, which means that taxpayers are trying to get all of their financial documents in order with the hope that their refund will be as large as possible. get w2 form online

When you start to file your taxes there are a few different documents that you are going to need to access with one of the main ones being the W-2 Form.

There should be no problem getting your W-2, however, because each company that you worked for during the year is responsible for sending it to you so you can have it before January 31.

Who Has Access to W-2’s Online?

Not all taxpayers will be able to get their W2 form online. Only taxpayers who have employers who use payroll services will have online access to their W-2’s. The best part is if you use TurboTax or H&R Block they will import the information for you for accuracy and speedier tax returns.

Find your W-2 with TurboTax

Find your W-2 with H&R Block

What Happens if You Move and Miss Your W-2?

Quite a few taxpayers miss their tax documents because they have moved and the documents go to their old addresses. If you are able to access your W-2 online, this will not be a concern. Furthermore, when you have online access to your tax documents you are able to get them faster than you would waiting on snail mail. This means you can be ahead of all of the taxpayers who have not received their documents in the mail.

When you get your W-2 form online, you will be notified via email once they are available. Once you access them, you can download and print them whenever you need to access them. This allows you to eliminate trying to keep your documents in a safe place or misplacing them.

The bottom line is if you get your W-2 form online you will get the same information that you receive in the mail but online versions come with more benefits. In fact, the only difference between the forms is one is digital. Nevertheless, as with your mailed W-2 you will want to make sure that the information is correct. Important things to check are your name and social security number.

What to do if Your W-2 Information is Incorrect

If you find that, there is an error on your W-2, you need to contact your employer to have it fixed. They have sent this information to the IRS already who will be expecting you to send information that matched the document or provide an explanation.

Additionally, if your W-2 has not arrived yet you have to find out what the holdup is even if it is just a small amount of money. The IRS will have the W-2 and they will want answers as to why you did not file it.

Importing Tax Information into Your Tax Return

If you decide to get your W-2 online, you will find it is a breeze to keep track of your tax information. If you have not gotten your W-2 online and it is available, you should definitely consider doing so.

We recommend that you file your income taxes with TurboTax online because they will import your W-2 information into the correct form to insure that tax filing is as easy as possible. By going with Turbo Tax you decrease, the chances of your tax return containing errors and they guarantee that you will get the largest refund ever or pay the minimum amount of taxes possible.

The TurboTax Tax Refund Calculator for 2018 is Free to Use

It is impossible to escape the stress that comes along with tax season completely. However, it would be nice to know in advance how much we have to pay the IRS or how much we can expect to receive back. The good news is thanks to Turbo Tax you can know in tax refund calculator for 2016advance and it is super easy to do so.

About the Tax Refund Calculator

TurboTax has created a handy tool that will allow you to know how much you can expect to receive back before you file your tax return. The best part is even if you do not use Turbo Tax to file your tax return you can still use the tax refund calculator for free.

How to Use the Tax Refund Calculator

TurboTax’s tax calculator is user friendly just like their tax software. It has a list of settings available at the left. Before experimenting with it they suggest that you go through the listings so you are aware of the options and features that they have readily available for you.

The best part is while the calculator is coming up with your totals there is a meter, located on the right, which calculates your total as you are adding in information. This way you can know what is affecting your IRS refund or amount due. Then, once all of your information has been entered, the meter will give you a total of how much of a refund you can expect or how much you can expect to pay in taxes.

Make Adjustments Before Hand

One of the greatest benefits of being able to see what the 2017, 2018 tax season holds for you is that you are able to make the appropriate adjustments to make filing as smooth as possible. You can figure out ahead of time if it would be in your best interest to take the standard deduction or to itemize.

Imagine if you had filed your taxes already then learned that you could have gotten a better outcome if you would have itemized your deductions instead of taking the standard deduction. You would have missed money or paid more in taxes and you would be stuck with that decision.

Tips for Using the Calculator

Before you use the tax refund calculator, you are going to want to make sure that you have all of the required documents and information available to insure that the estimate is as close to accurate as possible.

You should know which filing status you plan to use as well as your number of children who you can claim. Your income, payments, retirement information, business income, and charitable deductions also need to be handy. If you do not have all of the information available, however, the calculator can still provide you with some insight as to what you can expect during the tax season.


The tax refund calculator is great to provide you with a full or partial insight on your tax situation. The best part is it is free so you have absolutely nothing to lose!


New Homeowner Tax Deduction Tips

Congrats on becoming a homeowner. We know you want to get your home customized to your liking, but it is important to keep track of your expenses and finances since your tax situation has now changed. Therefore, today we are going to provide you with some new homeowner tax deduction tips so you can take advantage of all of the benefits that come with getting a new homeowner tax deduction tipsslice of the American dream.

Home Mortgage Interest & Points

This will probably be your largest itemized deduction. You will report the amounts on Form 1098, which will be sent to you from your lender.

Qualified mortgage interest means that you paid interest on a mortgage, which is secured, by your main home or a second home, that is not used for rental or business activity. The deduction can be limited by the amount of the loan and the use. However, your income does not limit it.

For example, the mortgage interest deduction for a loan that was used to buy, build or improve your home is limited if the loan balance exceeds $1 million ($500,000 for separate tax filers). For home equity loans that were not used for home improvements the deduction is limited if the loan balance is more than $100,000 ($50,000 for separate filers).

Amounts that are points are also deductible, but only in the year, they are paid and if the loan is secured by the main home and the proceeds were used to purchase, build, or improve the home. The points must be spread over the life of the loan if they were paid in place of amounts that ordinarily stated separately on the settlement statement.

Real Property Taxes

Real property taxes are deducted on Form 1040, Schedule A. In order to be deducted they have to be assessed as a percentage of the value of the home. In addition, they must go into the taxing authority’s general fund. If they were paid in exchange for a special project that increased the value, they cannot be deducted.

Usually, when they are nondeductible they will be referred to as “Special Assessments”. An example of this would be an economic development project. In addition, homeowner associated dues are not deductible.

When you pay real property taxes for closing the sale, the deduction is split between you and the seller. You can only deduct property taxes, which are allocated to the part of the year you own the property. If you pay the seller real property taxes, that payment is included in your cost basics and is not deductible.


It is very important that you track your basis in the property. This is your investment in the property. The points are purchase price and amounts paid as part of the closing. Even if a portion of the purchase price was paid with borrowed money, you need to track it. Your basis increases by amounts paid for home improvement. When you sell the home, your gain on the sale is determined by reducing the sale price by this basis.

If the IRS challenges the property’s basis, you must be able to provide receipts and invoices.

Gain Exclusion

When you sell the home, the gain is taxed at capital gain rates. However, if you reside in the home for at least two years out of five years, you may not be taxed on the gains. Additionally, you may be able to exclude up to $250,000 ($500,000 for joint filers) of the gain from the sale of a principle residence as long as you pass the ownership tests.

Lastly, even if you don’t live in the home for two years, certain circumstances, such as moving for a new job, can help you receive a reduced exclusion.

Private Mortgage Insurance

Private Mortgage insurance premiums were deductible in some scenarios in 2017 yet in 2017, they are not deductible.

Overall, home ownership does come with expenses. However, you can see that there are tons of benefits as well. If it is your first time filing taxes as a homeowner, it is beneficial to seek the help of an online tax filing service like TurboTax.


Learn about QuickBooks for Free

QuickBooks for Free

Anyone running a business is aware of how crucial good record keeping can be. Today there are more than 4.5 million businesses using QuickBooks software. It’s the most popular accounting software in the world. The problem is that so many businesses aren’t getting the most out of QuickBooks.

This guide is going to show you how to get the most out of QuickBooks through using a few advanced features.

1.  Repeated Transactions

Clients you deal with regularly likely make the same orders regularly. Entering these orders into QuickBooks individually every time is a lot of unnecessary work. QuickBooks will let you memorize transactions that happen repeatedly.

Let’s use an example to explain this. A client makes the same purchase every month. This is the same entry every single time, except for a different date. In such simple cases, QuickBooks can memorize the transaction and automatically enter them into the system as and when needed.

This feature will prevent mistakes and enable you to avoid even thinking about that client’s transaction because you know it’s already in the system. Just press Ctrl + M to access the Memorize Transaction feature.  Take note this feature won’t automatically send or print any paper documents. This will still have to be done manually, if necessary.

2.  Make Managing Loans Easy

Recording loan payments is important for many small businesses because they nearly always have a considerable amount of liability used to get them off the ground in the first place. The will allow you to record loan payments without making mistakes, including the most common mistakes of failing to separate the loan payment and the interest payment.

Loan Manager can be used to set up each loan with the relevant parameters and rates already in place. QuickBooks will generate the necessary record on the correct date of the month or quarter. Again, you’ll be able to save a lot of time by doing this.  Just go to the Banking menu and select Loan Manager from there.

3.  Handle Multiple Reports at the Same Time

There’s more to bookkeeping than entering records into a computer. They also need to distribute financial reports for company personnel to make decisions with. Printing numerous reports is time-consuming and confusing, which is why mistakes tend to happen.

Use the Process Multiple Reports feature provided by QuickBooks. Your bookkeeper will be able to group together lots of reports, together with the Memorize feature outlined above, and print them all out at the click of a button. Just go to the Reports menu and click the Process Multiple Reports feature.

As an additional tip, you should make sure you include the person’s name in the report title to make distribution simple. You can sort these reports using the Memorize Report feature to keep them in order.

What is the Earned Income Credit (EIC) and How to Qualify

The Earned Income Tax Credit, also known as the EIC and EITC, is a tax credit for individuals who only make an annual income that is considered low or moderate. Your filing status and your income determine the amount of the credit.

If you are able to qualify for the credit your federal taxes will be lower and you may even get a tax refund. However, to qualify you have to file a tax return even if you are not legally required to do so.earned income credit eic

General EIC Requirements

  • You and your qualified dependents have to have a social security number that is valid
  • You cannot file with the filing status married filing separately
  • Your investment income cannot exceed $3,300
  • You have to be a citizen/resident alien for the entire year
  • Your earned income has to come from self-employment or employment.

If you file your taxes with Turbo Tax, they will automatically calculate your credit amount based on the information that you enter into the system. Additionally, you can 
read more here to see if you are eligible for this tax credit.

Claiming the EIC If You Do Not Have Dependents

In the event that you do not have any dependents you may still be eligible for the credit. Those who have dependents will receive more; however, some people qualify without dependents.

Which Dependents Qualify?

The IRS uses qualifying children when it comes to determining the amount you will receive for the credit. In order for a child to be considered a qualifying child for this tax credit they must be a relative, have a social security number and meet the age, residency, and relationship criteria’s.

This means they have to be your son, daughter, foster child, step brother/sister, adopted child, or a descendent from them. In addition, they have to be under the age of 19 unless they are a student then they have to be under the age of 24.

If the child is disabled, there is no age limit. Furthermore, you cannot claim more than three qualifying children.

Are There Age Limits Regarding EIC Eligibility

If you and your spouse file married filing jointly, you can qualify as long as you are over 25 and under 65 if you do not have any qualifying children. If you have a qualifying child, there is no age limit.

Keep in mind that if you file your taxes with Turbo Tax you only have to answer a few simply questions to see whether you qualify for the EIC. This means that you will not have to know the current tax laws and you will be able to receive your maximum tax refund.

Student Tax Credits to Take Advantage of in 2016, 2017

If you or someone you claim on your tax return is going to college this fall, some of your costs could save you money when tax season kicks off. You may be eligible for a tax credit on your federal tax return. Therefore, today we are providing you with tax credits and tips for back to school season that will benefit you during tax time.

American Opportunity Tax Creditstudent tax credits

This tax credit is worth up to $2,500 annually for eligible students. However, this credit can only be claimed during the student’s first four years of higher education. 40% of the tax credit is refundable. This means that you could get up to $1,000 of the credit back as a refund if you are eligible to receive it.

Lifetime Learning Credit

This tax credit is worth up to $2,000. It does not come with limitations like the American Opportunity Tax Credit, which means you can claim it as long as you are an eligible student.

One Credit per Student

When claiming tax credits keep in mind, you are only eligible to claim one credit per year. However, if the student happens to be your dependent and you have more than one dependent that qualifies, you are able to claim one credit for one student and the other credit for the other student.

Qualified Expenses

Qualified expenses are used to determine your credit. Qualified expenses include things such as the cost for paying your tuition, fees, and other student related expenses. For more information on the rules for each credit, visit the IRS website.

Eligible Educational Institutions

Eligible schools are those that offer education after high school. Most colleges and universities make the cut and some vocational and postsecondary schools qualify. If you are unsure if your school qualifies, ask your school or see if your school is listed on the U.S. Department of Education’s Accreditation database.

Form 1098-T

Usually, you will receive Form 1098-T from your school by February 1st. This form reports your qualified expenses to the IRS. The amount shown can differ from what you paid. For example, your textbook costs may not appear on the form.

However, you are able to include those costs, usually, when you figure out your credit. Additionally, keep in mind that you can only claim the qualified expenses that you paid for during the tax year you are filing for.

Non-Resident Alien

If you are in the US on an F-2 Student Visa, you will generally be treated as a nonresident alien when it comes to filing your taxes. To find out more about this status visit the U.S. Immigration Support website. To learn more about restrictions you may experience visit IRS Publication 519.

Filing Your Taxes with TurboTax

Remember, when you file your taxes with TurboTax, you don’t need to know which schedules to fill out. We’ll ask you simple questions about your life and put your answers on all the appropriate forms.

You’ll get step-by-step instructions through your taxes, expert help when you need it and every deduction and credit that applies to you. We make sure you get the biggest refund possible.

Try TurboTax 2016 to Calculate Your 2015 Obamacare Tax Credit

Since January 2014 the Affordable Care Act mandates that majority of Americans have health insurance or pay a tax penalty. If taxpayers decide to obtain theObamaCare calculate health care creditir health insurance through the Health Insurance Marketplace, they potentially could get tax credits that could make their monthly premiums more affordable.

These tax credits are for those who are not eligible for affordable health insurance from other sources and those who are within two to four times of the federal poverty level. During the 2014 open enrollment, 85% of taxpayers who purchase insurance through the marketplace went with plans that included financial assistance.

When you file taxes with Turbo Tax, you are able to estimate your annual health insurance premium and tax credit. However, keep in mind you have to have purchased insurance via the Marketplace to be eligible for this credit.

The individual shared responsibility payment

If you decide to not sign up for health coverage and do not qualify for an exemption, you will have to pay a penalty when it comes time to file your taxes. This penalty is called, “the individual shared responsibility payment”.

The payment amount for 2014:

  • 1% of your household income that is above the tax return threshold for your filing status
  • A flat rate – $95 per adult, $47.50 per child, with a maximum of $285

(The penalty phases out at the national average premium for a bronze level plan through the Marketplace)

The payment amount for 2015:

  • 2% of your household income that is above the tax return threshold for your filing status
  • A flat rate – $325 per adult and $162.50 per child

Each year the penalty amount increases. Some individuals will qualify for exemptions.

Free calculators

Since 2014 there have been many Obamacare tax credit calculators popping up all over the internet. These tools serve the purpose of helping you understand the Affordable Care Act in a money perspective.

The TurboTax health exchange is your go to source so you can see how much your premium tax credit will be. You can also see what penalty you can expect to pay in the event that you decide not to sign up for health insurance and more.

Tax credit options

When enrolling in the Marketplace for health insurance with financial assistance, you have the following options.

  1. Get it now – When signing up you can have all or some of the estimated credit applied to your premium.
  2. Get it Later – You can claim the credit when it is time to file taxes

Keep in mind that if your family or income changes throughout the year it influences your premium tax credit. You have to report any changes to the exchange so they can make the appropriate adjustments.

Failing to do so could cause you to have to pay money back when tax time comes around. Additionally, if your income decreases you may be eligible for a refund.

To learn more about health insurance coverage and how it influences your tax situation make sure you visit TurboTax health.

Keep in mind if you file your taxes with TurboTax online you will receive your largest refund possible because they make sure that you are aware of all of the deductions and credits that you are eligible for.

Lifetime Learning Tax Credit – Expenses That Qualify

The Lifetime Learning Credit is for those who attend college classes. It allows them to get a 20% tuition expenses credit with a phase out limit of $2,000 in tax credits on their first $10,000 of Save for College - Calculator for Education Savings Investmenttuition expenses.

This credit is for you, your spouse, or your dependents that are in an eligible school and you had to pay the expenses for them. It differs from the American Opportunity Credit because you do not have to be in the first four years of undergraduate classes. People who have just taken one class can qualify for this credit.

Educational Institutions that Qualify

Accredited schools are considered eligible. Additionally, post-secondary schools and vocations schools qualify too. If the school accepts federal student aid programs via the US Department of Education, you can claim the Lifetime Learn tax credit for the tuition that you paid.

Expenses That Qualify

Expenses that are eligible for this credit include the fees and tuition that were paid for schooling. However, anything outside of that such as health, insurance, room and board, books, etc. are not eligible for the credit.

Additionally, you have to be the person who is responsible for covering the cost. You also have to reduce your qualifying expenses by the amount of assistance you received from various things such as grants or reimbursements. If you borrowed money such as from a student loan, you do not have to include this.

Who Is Eligible for This Credit

If you have a dependent child in college, you can claim this credit on your federal tax return. However, if your college student is not considered your dependent they are the ones who claim the credit on their federal tax return. In the event that you do not have a dependent but you pay their college expenses you are not eligible for the tax credit.

Income Limitations on the Credit

The Lifetime Learning Credit does phase out. However, if your AGI is lower than the phase out your credit will not be reduced. If you are in the middle-income range, you can expect it to be reduced. Additionally, if your income passes the phase out range you cannot claim the credit.

2014 Phase Out Periods

$54,000 to $63,000 – Applicable to those who file single, head of household or qualifying widow

$108,000 to $128,000 – Applicable to those who file married filing jointly

2013 Phase Out Periods

$53,000 to $63,000 – Applicable to those who file single, head of household or qualifying widow

$107,000 to $127,000 – Applicable to those who file married filing jointly

2012 Phase Out Periods

$52,000 to $62,000 – Applicable to those who file single, head of household or qualifying widow

$104,000 to $124,000 – Applicable to those who file married filing jointly

Closing Thoughts

Taxpayers could get $4,000 if they earned under $65,000 and under $130,000 for couples. However, if your income is between $65,000 and $80,000 or $130,000 and $160,000 for couples the maximum amount you will receive is $2,000.

If you file your taxes with Turbo Tax, they will make sure you get the maximum amount of money possible. This results in you receiving your largest refund ever!

Educational Tax Deductions and Credits

The cost of education is always rising. However, if you are someone who wants to grow your knowledge base you will be happy to know that education tax deductions and credits can help education tax deduction credityou with the costs of your education.

One of the tax credits is the American Opportunity Credit and another is the Lifetime Learning Credit. These credits allow you to reduce your tax dollars, dollar for dollar when you claim educational expenses on your federal tax refund.

American Opportunity Credit

This credit allows you to reduce your taxes up to a maximum of $2,500 per student for the educational expenses endured for the first four years. However, students have to attend at least part time and not have been convicted of a felony drug crime.

Various things qualify for this tax credit such as books, equipment, supplies, tuition, and other school related fees. In the event that your taxes are less than $2,500, the refund cut off amount is $1,000. However, those who make more than $80,000 or couples who make more than $160,000 will receive a low credit amount. The phase out limit for the credit is $90,000 in income or $180,000 for couples.

Lifetime Learning Credit

You do not have to be actively pursuing a degree in order to claim this credit. This credit is for anyone who is taking a course to further his or her education. It covers required tuition, equipment, and books. It allows you to claim a maximum amount of $2,000 on each tax return however; if the amount granted is more than your tax bill, you will not receive a credit in the form of a refund.

Additionally, the phase out limit is $63,000 or $127,000 for couples. Those who make more than $53,000 or couples who make more than $107,000 will receive a lower credit amount.

Educational Tax Deduction

Tuition and fees deduction, student loan interest, work related education, scholarships and fellowships can allow you to ease some of your educational financial strains too.

Tuition and Fees Deduction

If you are unable to claim the Lifetime Learning Credit because of the phase out limit, you can claim the Tuition and Fees Deduction of up to $4,000. This is true even for taxpayers who do not itemize their tax returns. As long as you do not make more than $80,000 or $160,000 for couples you are eligible. However, you are unable to claim both a credit and a deduction simultaneously.

Student Loan Interest

Even if you do not itemize your deductions, you can deduct your student loan interest on your taxes. This deduction does not phase out until $2,500 per tax return. However, you must not exceed $60,000 in income or $125,000 if you are married. Furthermore, if you have cash in a US savings bonds to pay for your education the interest is tax-free as long as the cash is used for your education.

Work Related Education

If you are going back to school due to your job, you may be eligible to claim this itemized tax deduction. However, you have to prove that the education was to maintain or improve your work skills or a requirement from your employer. However, this deduction is not for those who have to do it to land a new career.

Scholarships and Fellowships

If you receive a scholarship or a stipend for a fellowship, it is tax-free if you use the funds for tuition, supplies, or other school related expenses. You do have to be a degree candidate though.

Closing Thoughts

If you are a student, you should file with Turbo Tax. They will make sure you get the credits or deductions that you qualify for in addition to making sure that you receive the largest tax refund possible.