For those who have recently graduated from college, saving up enough money to make ends meet can be a difficult challenge. However, there are tax breaks available for those who have earned their degrees which can keep a little extra money in their pockets.
Most of those who borrowed and earn less than $60,000 are eligible for a full Student Loan Interest Deduction while those who currently earn from $60,000 to $75,000 can earn a partial deduction.
There is a $2,000 per year Lifetime Learning Credit for those who are paying qualified expenses in terms of their post-secondary education. In addition, they can be paying them for an eligible student as well. This is a non-refundable reduction that is dollar for dollar in the tax bill, which means that for expenses of $2,000 or less the sum will be reduced to zero. However, the difference will not be refunded.
This also includes the American Opportunity Tax Credit which is a non-refundable $2,500 option that is available for the first four years of the postsecondary educational experience.