Tax Tips for College Students & Parents

Jul 29

College brings excitement, independence… and a few tax questions nobody warns you about. Here’s what families should know to avoid mistakes and maximize savings.

1. Can You Still Claim Your Student as a Dependent?

Most parents can, even if the student works. The key factors:

Age
Fulltime enrollment
Who provides more than half of their support

This affects credits, refunds, and filing requirements.

2. Education Credits Can Save You Money

Two major credits:

American Opportunity Credit (AOTC) — up to $2,500
Lifetime Learning Credit (LLC) — up to $2,000

These reduce your tax bill dollar for dollar.

3. Students Who Work May Need to File

If your student has a job, they may need to file their own return — but they should not claim themselves if you’re claiming them.

4. 529 Plans & Scholarships

529 withdrawals used for qualified expenses are tax-free
Scholarships used for tuition are tax-free
Scholarships used for room & board are taxable

What This Means for You

College taxes can get confusing fast. RLA can help you determine who should claim what and how to maximize your education credits.

Alexandria Harper https://www.buildablebrand.com