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My One Year Student Loan Payoff Update

  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 Tips for Students 2022 (1098-T and 1098-E)

 

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?  Be sure to subscribe to my email list there’s even a freebie included! 




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