3 Tax Tips and Write-Offs for Students and Recent Grads
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3 Tax Tips and Write-Offs for Students and Recent Grads

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3 Tax Tips and Write-Offs for Students and Recent Grads You love to save money (that’s why you shop at Textbooks.com) and we love to save you money (that’s why our motto is happy you, happy us). With April 15 fast approaching, we spoke to accountant Andrew Poulos on his top tax tips for college students and recent graduates. Good news: there are several student-friendly tax deductions that can offset your gross income and put money right back in your pocket.

Poulos – an enrolled agent who also edits for ConsumerAffairs.com, wrote the QuickBooks Ultimate Lesson Guide, and has appeared on CBS News, NBC News, and Fox Business Network – says that there have been a number of changes to the tax code with the GOP tax reform bill and many affect the allowable tax write-offs and deductions for college students, their parents, and recent graduates.

His #1 tax tip as you read through this is? “Everything in the tax world is case by case, and can change from one year to the next, so be sure to review your situation with a licensed tax professional each year to make sure you are maximizing all your deductions.”

1. Your Four New Favorite Words: Student Loan Interest Deduction
Get this. Mom and Dad pay your crazy expensive student loans, you get to claim a student loan tax deduction as if you paid it. “The student loan interest deduction was going to be eliminated in the new GOP tax reform bill, but after much public outcry, the final bill retained the deduction,” says Poulos of one of the most pertinent tax tips for students and parents. “College graduates can deduct up to $2,500 of student loan interest on their 2017 tax return, as well as on the 2018 tax return that will be filed in the spring of 2019. It’s the gift that keeps on giving.”

2. New Job, New City = Money Back In Your Pocket
Did you move for a full-time job in 2017? If it was more than 50 miles from your old residence, then you may be able to write off those $100/hour movers and all that packing tape, along with other allowable moving expenses like storage cost, truck rental, packing supplies, fuel cost, lodging, parking fees, and tolls. “The benefit of the moving expenses is they are deducted as an above the line deduction, offsetting any income you earned for the year, dollar for dollar,” says Poulos. Two downsides: This deduction for tax year 2018 is going away with the GOP tax reform bill, and meals while you travel for the move aren’t deductible. Change that Capital Grille reservation to Outback, mmmk?

3. Three More Favorite Words: Mortgage Interest Deduction
Have you been lucky enough to make your Fixer Upper dreams come true? Your mortgage interest is tax deductible for mortgage loans less than $750,000. “With the GOP tax reform bill, the standard deduction has increased for individuals and married couples,” continues Poulos. “But that doesn’t necessarily mean a recent college graduate who purchases a new home won’t have enough itemized deductions to write-off their mortgage interest.”

Head to www.savvytaxguy.com or follow Poulos on LinkedIn at /andrewpoulos for more tax tips.


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