Now that you’ve earned your college degree, it’s time to start thinking about your taxes. If you’re like many college students, you’ve spent the last four years focusing on academics (or not), picking up a few shifts here and there for pocket money. If so, you may not have much experience preparing and filings your taxes. Although taxes can be somewhat unnerving to the uninitiated, you have several resources available to you as you work to establish yourself financially. Ann Irons, a CPA and tax professional in Bellingham, MA, shares tips for navigating the tax return process and saving money throughout the year.

Who Can Claim Me as an Exemption?

Even though you may not have lived with your parents throughout college, it’s not uncommon for parents to claim their students as an exemption. After all, it’s worth a cool $3,900! If mom and dad haven’t claimed you, you can earmark that amount on your own return as non-taxable. How do you determine who can claim you? Your parents can claim you if:

• You are younger than 24 years old
• Your parents provided > 50% of your financial support
• You have attended as a full-time student for at least five months out of the year

You can claim yourself if:

• You are older than 24 years
• You are not yet 24, but you did not rely on your parents for more than half of your support

Can I Claim a Deduction for Moving Expenses?

After graduating and securing your first job out of college, you can claim moving expenses. The deduction needn’t be itemized, and you can only claim it if your new employer is not covering your moving costs. To be eligible for the deduction, you must move a minimum of 50 miles away, and you should work full-time for 39 weeks in the year after you move. Although you cannot deduct the cost of meals eaten during the moving process, you can deduct the cost of packing materials, renting a truck, mileage, and fuel expenses.

Can I Claim Expenses Related to Job Searching?

Unfortunately, you cannot deduct any expenses associated with your job search.

Can I Deduct the Interest Amount on My Student Loans?

Following the post-graduate grace period, you must repay your student loans, including interest. Take note of the amount of interest paid, as the IRS permits you to claim it on your tax return. By doing so, you lower your taxable income and can write off $2,500 worth of student loan interest. Ann points out that you must be eligible to claim yourself on your return to qualify. Most students are able to deduct interest for several years after graduating, although income phase outs may apply.

Need help preparing your post-graduate tax return? To learn more about filing your taxes after graduation, or to request a meeting with Ann Irons, CPA, LLC, contact our Bellingham tax professional office at 508-966-0700. We provide individual and business tax preparation services for residents of Woonsocket, Medway, Milford, Boston, Bellingham, and the surrounding areas.