Tax Tips For College Graduates

Now that school is over and you have graduated, it'sto take this and run, but consider itemizing instead. If
time to jump into the real world of work and taxes.you think that credits, exemptions and deductions might
Here are a few tips just for you.give you a lower tax liability, you can consult a tax
If you need to relocate 50 miles or more for a job,professional or check it out on income tax software.
there's a tax deduction for that. The regulations andEither resource can tell you whether you are better
limitations of this deduction are tricky, for instanceoff itemizing or taking the standard deduction.
lodging and gasoline expenses can be deducted, butCollege students often give away their old belongings
food can't be deducted. So, before you go jumping atafter graduation. Consider donating these items to a
a job 200 miles away, research this tax breakcharity and getting a receipt. The deduction could
extensively.come in handy on your income tax return.
Credit card companies are targeting college studentsMore college graduates than ever, especially those in
especially, and even after graduation. While it is not atechnology fields, are moving from school directly into
tax tip, it is good advice to stay away from openingself-employment. There is a host of deductions, credits,
too many credit card accounts. Credit cards do notand exemptions for individuals starting up in business
represent free money and they can get you in financialfor themselves. Contact a tax professional to discuss
jams that have negative results when it comes time toyour situation if this is a move you are considering.
pay taxes.Money is probably somewhat tight at this juncture in
You will now be able to deduct the interest you payyour life, but it may do you well to consider consulting a
on your educational loans. As a recent graduate, thistax professional in order to realize the benefits that
could be a substantial amount of money for you. Become with your tax status. Because of being a recent
aware, however, that the deduction phases out asgraduate, you fall into a one-time category with many
your income reaches $65,000 annually.benefits and pitfalls regarding taxes. Having the
If you take your standard tax deduction, you will realizeguidance and experience of a tax professional at this
a tax credit of $5450 if you are single and $10,900 astime in your life might be well worth the cost in order to
a married couple. Claiming head of household gets youguarantee you the lowest tax liability you can
a standard deduction of $8000. You might be temptedlegitimately get as you start out in the working world.