It might seem odd to start with retirement when you’re just starting on your career journey or only have a weekend job, but this is a valuable tax deduction for students in the long-run.
If you trade stocks in a taxable account, you hopefully only make gains. But, we live in a realistic world. Not all of our investments will turn out to be winners. Depending on your state of residence.
This credit can be worth up to $2,500 per year for four years of schooling after high school if enrolled at least half-time and working towards a degree. To claim the full credit.
This credit does not carry a minimum enrollment amount and you don’t need to work towards a degree. Down the road, if you choose to return to school to earn additional credentials.
As part of the CARES Act, many Americans received a stimulus check or two. If you aren’t claimed as a dependent on someone’s tax return in 2020, and you didn’t receive a check, you could claim the Recovery Rebate Tax Credit on your return.