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New Grads. New Life. New Tax Implications.07.01.14

Once the final exams and commencement ceremonies are over, it’s time for college grads to move on to the next phase—with exciting challenges and opportunities, and “real world” independence. But, along with that independence comes some very adult obligations—including taxes. To ensure you’re getting the most out of your taxes, be certain to understand what to expect and which deductions and credits you’re entitled to receive!

 

Student Loan Interest Deduction—Claim it As Long as You Can!
It’s possible to deduct up to $2,500 in student loan interest each year, thereby lowering your taxable income, provided you are claiming yourself on your tax return. There is no limit on the number of years you can claim the deduction; however, there are limits on the income you can have and still claim the deductions, which may take affect you in future years.

 

Can You Claim Yourself as a Deduction?
It’s likely that your parents have been claiming you as an exemption on their taxes for the past few years and since that exemption can be worth $3,950 in 2014, you may want to claim it for yourself—but can you?


If you’re under 24, or you’ve been a full-time student for at least five months of the year, your parents may still get to claim you as their deduction; however, if you are older than 24 or if you have been mostly supporting yourself, you may be able to claim your own exemption. Verify with your Tax Pro before you file your return to make sure there are no duplications.

 

Job Hunt Expenses? Not This Time!
Although you will be able to deduct job search expenses, when moving from one job to another within the same job field, this specific deduction does not apply when you are searching for your first job.

 

Movers and Shakers…and Deductions!
If your new dream job requires you to relocate you can claim moving expenses on your tax return, provided your new employer does not reimburse you. Deductible expenses can include: car mileage, packing materials, moving truck rentals and even lodging expenses (minus meals). To qualify for the deduction you must be moving at least 50 miles and need to work full-time for at least 39 weeks during the 12 months following your move.

 

Don’t take chances with your first “real” tax return, let the Tax Pros at Jackson Hewitt help you get everything you deserve!