WASHINGTON, DC, MARCH 28, 2013 -- Looking forward to a big tax return this year? Or seeking ways to reduce the amount you shell out to Uncle Sam?
The National Association of Student Financial Aid Administrators (NASFAA) has released a new, free Tax Benefits Guide for Tax Year 2012 designed to help students and families navigate the sometimes thorny task of determining which higher education tax benefits you qualify to receive—and which will secure you the maximum return on April 15.
The federal government provides roughly $19 billion in tax savings every year. These incentives come in a couple of forms:
On average, tax credit recipients save over $1,500 annually and tuition deduction recipients save about $400 annually (Source: College Board 2012).
“Even if you normally wouldn’t file a tax return because of your income level, be sure to file to avoid missing out on education tax benefits that could put money in your pocket,” said NASFAA President Justin Draeger. “If you have questions about what qualifies, talk to someone in your school’s financial aid office. Financial aid administrators partner with students and families every day to help them plan and pay for their higher education.”
If you attended college in 2012, you may qualify for more than one of these incentives, but there are some restrictions. It's a good idea to calculate your taxes multiple ways to find the maximum benefits available to you.
Additional detail on eligibility requirements is included in NASFAA’s Tax Benefits Guide for students and families.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at more than 3,000 colleges, universities, and career schools across the country. Each year, our members help nearly 15 million students receive funding for postsecondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
Publication Date: 3/28/2013