January 28, 2022 marked my one year anniversary of paying off my student loans . Reflecting back on choosing to pay off my student loans leaves me with several take a ways that I want to share with you! In September 2020 I decided to become debt free by utilizing the debt snowball method to pay off all my debt. Before this I had struggled to save and really understand basic financial principles. As a first-generation college student, I received a scholarship to attend undergrad for free, but the scholarship did not cover summers. During the summers I took out student loans to cover costs without paying interest rates or how much I was taking out. By the end of undergrad I had amassed a little under $17K. Fast forward to graduate school I received another scholarship that covered my education. At the time I was a teacher in a new very expensive city and I had missed the cutoff to have my paycheck last me throughout the summer. So, I decided to take out a loan for two summers to keep
Tax season is here and it’s that time again to gather
all of your documents to submit to the IRS! The IRS officially opened for
tax season on January 24, 2022 and for students, there may be a few additional items
that you should submit to maximize your credits and deductions. After
successfully completing my taxes, I decided to give you a few tips on the
documents that are needed. My most successful video on YouTube
with over 5K views focused on this topic so here are a few updates for this tax
season!
Figure 1: This is a thumbnail of my latest video “Tax Tips for Students 2022 where I am smiling while looking at the camera. I am wearing a brown sleeved shirt while seated in my office.
What
Documents Do You Need?
1. 1098-T:
This is your tuition statement from your university regarding how much you paid
for your tuition and the scholarships/grants that you received.
2. 1098-E:
This is your student loan interest statement from your student loan holder if
you paid interest towards your student loans.
Figure 2: This is a blank 2020 1098-E tax form.
How
Will I Get These Documents?
1. 1098-T:
This will come from your university via email, mail, or under your student
account.
2. 1098-E:
This will come from your student loan holder via email, mail, or under your
account.
Figure 3: This is a photo of a white envelope on a blue background used to portray an email.
When I Receive These Documents?
You will receive each of these documents by January 31, 2022 so be sure all of your methods of communication are up to date.
Figure
4: This is a photo of a calendar were January is at the top and the number 31
is at the bottom.
What
Tax Credits Do I Qualify For?
1.
American Opportunity Tax Credit (AOTC):
An up to $2,500 tax credit for qualified educational expenses for students in
the first four years of their education.
2. Lifetime Learning Credit (LLC): Worth $2,000 per tax return for qualified education expenses to help pay for undergraduate, graduate, and professional degrees.
Figure 5: This is a photo that reads “Tax Credits” spelled out in block letters on a brown background.
What
is the Difference Between the LLC and the AOTC?
Check out this link
from the IRS.
Have you filed your tax return already? What tax
credits did you utilize? Drop down in the comments and let me know! Oh and Ms.
Duggan is not a tax professional so direct all of your tax questions to your
trusted tax professional. This blog and video
are for informational purposes only! Want to be the first to hear news from Ms.
Duggan regarding your educational needs?
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