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By Roger Chartier

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Save money on back to school costs

The bills for school are right in front of you, and you need to learn how to save money on that for sure.  Don't hesitate but read this article on how to do just that.

These are tax tips and other tips that you can use for students, dependants and the parents who are paying the costs of school for the year. You get exemptions when you file your tax return.

The American Opportunity Credit

In the year 2012, we still have this credit as it was originally created under the American Recovery and Reinvestment Act.

For being a student at an eligible institution, you can get a credit of up to $2,500 per student for up to 4 years of post secondary education.

You can have the chance to get up to $1,000, even if you don't owe any taxes because forty percent of the credit is refundable.

The qualified expenses include fees, tuition, course related books, supplies and equipment.

Lifetime Learning Credit.

In 2012, and for the years that you are in an educational institution, you can usually collect as much as $2,000 a year for qualified education expenses by using the Lifetime Learning Credit.

This is terrific because there is no limit on the number of years as long as you are in the qualified scholastic program.

You can only claim one type of education credit for each student in each year.

Student loan interest deduction.

You might have the chance to deduct interest that you paid for the qualified student loan for a tax year.

It can save you up to $2,500 of income from your taxes and you don't have to itemize your deductions for that.

These benefits are based on your income and you can learn whether you will be reduced or eliminated from the option and more about the details of the plans from Publication 970 Tax Benefits for Education.