So if you’re paying for school, make sure you check out the American Opportunity Credit. Students in their first four years of higher ed. may qualify for as much as $2,500. Now, there are also extra deductions for your loan interest and tuition-related expenses. However, like most of these deductions, the amount decreases as your income increases.
Oh and if you’re a teacher, you can still write-off up to $250 in out-of-pocket expenses for books and other supplies. Considering a recent survey found teachers spend $485 out-of-pocket on supplies, the extension will be a welcome deduction.