You can also use H&R Block’s free tax calculator to estimate your refund and avoid overpaying in taxes. Signing up for H&R Block’s newsletter is another way to stay informed about discounts and promotions. Finally, you can refer a friend to H&R Block and receive rewards for each referral. Remember that coupon codes may have expiration dates and other restrictions, so be sure to read the fine print before redeeming your coupon.
- Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car.
- If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status.
- Before filing your taxes, use H&R Block’s free tax calculator to estimate your refund.
- If you refinanced a student loan with another loan from an educational organization or a tax-exempt organization, the cancellation of that loan may also be treated as discussed above.
H&R Block Discount for Teachers: Save on Your Taxes
When Kelly enrolled at College X for the freshman year, the school required payment of a separate student activity fee in addition to the tuition. This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Although labeled as a student activity fee, the fee is required for Kelly’s enrollment and attendance at College X and is a qualified expense. You can claim an American opportunity credit for qualified education expenses not refunded when a student withdraws. Wilbert was eligible for the American opportunity credit for 2019, 2020, 2021, and 2023.
If two qualified educators are married, can they both claim the deduction?
For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees.
Other Ways Teachers Can Save at H&R Block
As a teacher, it’s important to take advantage of all the tax deductions and credits available to you. However, navigating the tax code can be confusing and overwhelming. For instance, 37 states plus the District of Columbia allow taxpayers whose incomes fall under a certain income level to deduct tax preparation discounts for teachers student loan interest when calculating their taxable income. Those who have more complicated tax returns may want to seek the assistance of paid tax preparers. However, there are various online programs that are not prohibitively expensive and can lead you through the process rather painlessly.
FAQs on Tax Savings for Teachers
You can complete your tax return on your own schedule from the comfort of your own home. H&R Block’s user-friendly software guides you through the process step-by-step, so you don’t have to worry about making mistakes. Plus, you can save your progress and come back to it later if you need to.
Although labeled as a student activity fee, the fee is required for Marci’s enrollment and attendance at College X. Therefore, it is a qualified expense. If anyone, such as Todd’s parents, claims Todd on their 2023 tax return, whoever claims Todd may be able to use the expenses to claim an American opportunity https://turbo-tax.org/ credit. If anyone else claims Todd, Todd can’t claim an American opportunity credit. In January 2023, Dee enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a travel agent. Dee completed the program in December 2023 and was awarded a certificate.
These products come with a variety of features, including the ability to import your tax info from last year, step-by-step guidance, and free expert advice. Plus, if you run into any issues, you can get help from a tax professional via chat or phone. To get the discount, simply apply the coupon code at checkout. If you’re not sure which product is right for you, H&R Block has a product comparison tool on their website to help you choose.
In order to avoid paying tax on the distribution of the amount remaining in your account, you contributed the same amount to your sibling’s QTP within 60 days of the distribution. When you graduated from college in January last year, you had $5,000 left in your Coverdell ESA. You wanted to give this money to your younger sibling, who was still in high school. In order to avoid paying tax on the distribution of the amount remaining in your account, you contributed the same amount to your sibling’s Coverdell ESA within 60 days of the distribution.
The result is the amount of adjusted qualified education expenses for each student. Grace and William, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. William bought the books from a friend; Grace bought the books at College W’s bookstore. Both are qualified education expenses for the American opportunity credit.
A fellowship grant is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Complete your purchase and begin using TurboTax to prepare your taxes. Tax season can serve as an unwelcome reminder to teachers that they don’t earn as much as they would like to, a problem exacerbated in recent years by continuous increases in the cost of living and relatively flat salaries. The Moneywise Teacher also participates in various affiliate programs for a wide range of companies via affiliate networks such as CJ, FlexOffers, ShareASale, Impact and others.