Tax Deductions for Parents of College Students To Save Money

In the past 20 years, the cost of attending college has tripled – increasing almost 8 times faster than wages.

While public higher education is mostly a state responsibility, the federal government does incentivize continuing education through tax deductions and tax credits.

The increasing cost of college has given rise to massive college debt. Plenty of parents, students, and guardians want a pause from these expenses.

Luckily, the US government provides a variety of tax breaks for college students or parents through tax credits, tuition, and fees deduction, and tax-free savings account.

Here are six tax deductions and credits that can help you save thousands of dollars for several years.

1. Retirement Account Contributions (IRA)

TIt might seem odd to start with retirement when you’re just starting on your career journey or only have a weekend job, but this is a valuable tax deduction for students in the long run.

2. Capital Gain Losses

If you trade stocks in a taxable account, you hopefully only make gains. But, we live in a realistic world.

3. American Opportunity Tax Credit Losses

If you pay your way for college, including tuition, fees, and other qualified higher education expenses, you may have the ability to claim the American Opportunity tax credit

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