Tax Tips for College Grads

Now that school is over and you have graduated, it's time to jump into the real world of work and taxes. Here are a few tips just for you.

If you need to relocate 50 miles or more for a job, there's a tax deduction for that. The regulations and limitations of this deduction are tricky, for instance lodging and gasoline expenses can be deducted, but food can't be deducted. So, before you go jumping at a job 200 miles away, research this tax break extensively.

Credit card companies are targeting college students especially, and even after graduation. While it isn't a tax tip, it is good advice to stay away from opening too many credit card accounts. Credit cards do not represent free money and they can get you in financial jams that have negative results when it comes time to pay taxes.

You will now be able to deduct the interest you pay on your educational loans. As a recent graduate, this could be a substantial amount of money for you. Be aware, however, that the deduction phases out as your income reaches $65,000 annually.

If you take your standard tax deduction, you will realize a tax credit of $5450 if you are single and $10,900 as a married couple. Claiming head of household gets you a standard deduction of $8000. You might be tempted to take this and run, but consider itemizing instead. If you think that credits, exemptions and deductions might give you a lower tax liability, you can consult a tax professional or check it out on income tax software. Either resource can tell you whether you are better off itemizing or taking the standard deduction.

College students often give away their old belongings after graduation. Consider donating these items to a charity and getting a receipt. The deduction could come in handy on your income tax return.
More college graduates than ever, especially those in technology fields, are moving from school directly into self-employment. There is a host of deductions, credits, and exemptions for individuals starting up in business for themselves. Contact a tax professional to discuss your situation if this is a move you are considering.
Money is probably somewhat tight at this juncture in your life, but it may do you well to consider consulting a tax professional in order to realize the benefits that come with your tax status. Because of being a recent graduate, you fall into a one-time category with many benefits and pitfalls regarding taxes. Having the guidance and experience of a tax professional at this time in your life might be well worth the cost in order to guarantee you the lowest tax liability you can legitimately get as you start out in the working world.

On completing your schooling, a new phase in your life starts. You may continue with your education or may look out for a job. Many credit card companies will be after you, sending you a lot of pre-approved offers. In all these activities there is an element of taxation involved. In fact, IRS starts partnership with you from that time! How to get along with your new partner? Chintamani Abhyankar provides useful tips and a bit of advice.
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.