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!
Interest Deduction—Claim it As Long as You Can!
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.
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.
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
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!