If you are attending school and are a veteran, there are a number of benefits that you are qualified for. Serving your country allows you to get Montgomery GI benefits, and Tuition assistance benefits that allow you to attend classes many times when you could not afford to. But there are also direct financial benefits that are available to any Veteran who is going to college. These benefits are in the form of deductions that you can take off the top of your annual tax bill, that helps make for a great start financially each year.
In some cases you can take up to $4,000 dollars off of your taxes. Some people qualify for the Lifetime Learning Credit, or the Hope Learning credit deduction. These are excellent programs, but they have limits. For others, there is a more basic tax deduction that you can qualify for if you meet a certain number of qualifications. If you are paying expenses for an eligible student, and you pay for the expenses for education at a qualified institution of higher learning, and the student is yourself, your dependent, or your spouse, then you may be eligible to claim up to $4,000 off your tax bill. You cannot claim the deduction if any of these conditions are true, you earn more modified gross than $80,000 dollars, you are claimed on anyone else’s tax return (such as your parents) or if you have to file separately as a married person, or last if you are a alien or non resident. If ANY of these factors are true then its likely that you cannot apply for this tax reduction.
To qualify for the possible $4,000 dollar deduction you have to not earn more than $65,000 dollars a year gross income. The maximum that you may be allowed to claim is $4,000 dollars.
Costs for fees, and tuition are deductible, and these costs for first three months of 2008 are also eligible. You cannot claim tuition paid by tax-free funds such at Montgomery bill, military TA, or federal financial aid.
For example if your tuition is $15,000 dollars a year, and you pay for nearly all of it, $12,000 dollars with financial and military educational aid, then all you can claim is the remaining $3,000 dollars. If this amount was over $4,000 dollars you could only claim the first $4,000 dollars.
