Five Ways You Can Fatten Your Tax Refund
Before you hit “submit” on your tax return, make sure to look into these tax moves:
- •Write off student loan interestYou can deduct up to $2,500 in student-loan interest even if you’re taking the standard deduction. To qualify, taxpayers need to have a modified adjusted-gross income below $80,000 if they are single, or below $160,000 if they are married.
- •Claim other education-related tax breaks.The Lifetime Learning Credit can be claimed by people who took one course at an eligible education institution last year, even if they are not working toward a specific degree. This can help cover the costs of a one-time course at a college or vocational school.
- •Check out the earned-income tax credit.Many people incorrectly assume that they need to have children to file for the earned-income tax credit, a tax break for low- to moderate-income workers. But single people can still receive credits up to $503 if they earn less than $14,820.
- •Breaks for retirement savings.You have until the tax-filing deadline, which is April 18 this year, to open an individual retirement account (IRA) and deduct that contribution on your 2015 tax return. Savers can contribute up to $5,500 a year into an IRA (or $6,500 a year if they’re at least 50 years old) and can deduct the full amount if they are not covered by a retirement plan at work.
- •Job-related credits.If you moved a certain distance for a new job you may be able to deduct those moving expenses, including the cost of movers and travel. You can also deduct job-hunting expenses, such as fees from a job-placement agency, the cost of preparing and printing your résumé, and travel expenses.
- •Get more tax advice on our personal finance blog, Get There: http://wapo.st/23aR4HJ