3 Financial Tips Following Graduation

Post-graduation life can feel freeing and blissful; however, it is good to get a head start on taking control of your finances. From new jobs to new cities, apartments, and expenses one thing you should not be stressing about is keeping up with your taxes. By taking advantage of these tax credits and tips, you should be starting off on a strong foot.

1- Lifetime Learning Credit
Now that you have graduated, the Lifetime Learning Credit is worth thinking about. This credit applies to expenses that you incur when taking almost any higher education course, and when taking non-degree-seeking courses to improve your job skills. This credit can be claimed any time in life with no limit on the number of years you can claim the credit. The credit is 20% of up to $10,000 of qualified education expenses, with a maximum annual credit of $2,000 per tax return. It is important to note that this credit isn’t refundable, and you must enroll in a qualifying institution

2- Deductible Student Loan Interest
You can qualify for a deduction of up to $2,500 on the student loan interest you pay every year. This is in addition to your standard deduction, which is $12,950 for the 2022 tax year for single filers. However, the amount of student loan interest you can deduct is reduced and eventually eliminated once your modified adjusted gross income (MAGI) exceeds $70,000 for the year.

3- Make Sure Your W4 Is Correct

When you start a new job, your employer will ask you to fill out Form W-4. This form is how you determine the amount of income tax your employers will withhold from your paycheck. If your employer withholds too much throughout the year, you will receive a refund, and if they withhold too little, you will owe taxes. Your goal should be to not owe anything on Tax Day. So, if you file your tax return and your withholdings didn’t cover your tax liability (or if you have earnings from self-employment), you may need to pay estimated taxes each quarter to make up the difference.

For some more tips, check out this article – Five Financial Tips Following Graduation! And as always if you have any questions, CKH Group is here for you! Reach out and let’s chat, you can book a free online consultation, or you can contact us at 1-770-495-9077 or email us at info@ckhgroup.com

 

The above article only intends to provide general financial information and is based on open-source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personalized tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm/errors/claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.

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