How to Calculate Education Tax Credits – Cost of College Education
A private university cost approximately $37,000. This figure is about $10,500 for a public university. With such a steep cost, you’ll require any assistance you get to make it an affordable and acceptable.
To aid students in tackling cost of tuition The federal government has created tax credits for tuition. This can help reduce overall expenses. It can also be overwhelming if understand the tax credit options applicable and how to claim the tax credit.
You may already be aware that tax credits aid in reducing the total amount of taxes you need to pay according to a dollar-for dollar basis. Tax credits to help with education assist in reducing the cost of tuition and also compensate for lessening the amount you pay in tax on your income tax returns.
If the credit you receive reduces your tax liability, then you may be eligible to receive the benefit of a tax refund. It is possible to use the cash refund for school supplies and textbooks.
Watch this informative video by The Bemused: Making Sense of Money and discover how to calculate tuition tax credits. Most college students have a hard time when filling out their IRS Form 1098T. Therefore, this instructional video should guide you through the math involved with child tax credits.