Education Prep for Post-Grad Life With These 5 Financial And Tax Tips Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published May 25, 2023 3 min read Congratulations, Class of 2023 — you did it! While graduation is a major milestone that should be celebrated, it is also a time to prepare, both mentally and financially, for your shift into the “real world.” As you transition into this next phase of your life, here are 5 financial tips to help manage your money and taxes. Take Charge of Your Situation: As soon as you go out on your own and start earning a full-time income, it’s time to start taking responsibility for your obligations. This means doing things like adjusting your W-4 and understanding your withholding, making estimated tax payments if you’re self-employed or working as a contractor, and keeping accurate records of tax-deductible expenses. If you dive into self-employment, QuickBooks Self-Employed can help you easily track your business income, expenses, deductible mileage, and help figure out your quarterly estimated taxes year-round. You can also easily export this information to your TurboTax Self-Employed tax return and eliminate entering your information again at tax time. Open a Tax Advantage Savings Account: One of the best things you can do for yourself financially is to open and start contributing to tax-advantaged retirement savings accounts (i.e. 401K, Roth IRA). These accounts serve the dual purpose of helping you get prepared for your financial future and helping you save money on your taxes, both now and in the future. Take Advantage of Education Tax Benefits: Don’t forget to take advantage of the education tax benefits available today. You may have had some qualifying education expenses earlier this year, or you may still be incurring expenses due to graduate work. Make sure you download or receive the 1098-T form that shows tuition paid during the school year/semester. Be sure to keep your receipts for your education expenses like tuition and fees, books, supplies, and equipment so that you can take advantage of education tax credits and deductions available at tax time. Don’t Forget the Student Loan Interest Deduction: Once you graduate, you’ll probably be required to start making regular payments on your student loans. Interest on the loans will make up a large amount of those payments; however, you can deduct that interest when filing your taxes. Up to $2,500 can be deducted. Your lender will send you a Form 1098-E reflecting the total interest paid over the year. File A Tax Return: You’ll want to file a return even if your income is below IRS filing requirements if you had federal taxes withheld from your paychecks since you may be entitled to a tax refund. Especially if you’re eligible for a refundable tax credit like Earned Income Tax Credit. Every year, the IRS reports over $1 billion in unclaimed tax refunds and the average median unclaimed tax refund is almost $900 but you have to file your taxes in order to get your tax refund. Don’t worry about knowing these tax benefits. TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your answers. File now Previous Post Taxes 101: The Gift Tax Next Post Happy National Children’s Day! Here’s What Having a Child Means… Written by TurboTaxBlogTeam More from TurboTaxBlogTeam One response to “Prep for Post-Grad Life With These 5 Financial And Tax Tips” The Student Loan Interest Deduction really helps. I heard that the Government is going to forgive upwards of a trillion dollars in student debt. Any truth to that? Reply Leave a ReplyCancel reply Browse Related Articles Tax Tips How Much Does the Government Make Off of Gambling? Tax Tips How to Save a Bundle for Your New Bundle of Joy Tax Tips Can I Claim My Girlfriend As a Dependent on My Taxes? Tax Tips Tax Tip: Changing Tax Withholdings Education Podcast: Tax Tips to Help You With Student Debt Tax Deductions and Credits Tax Deduction vs. Tax Credit Tax Tips Dirty Dozen Tax Scams for 2010 Taxes 101 TaxCast: Last-Minute Tax Tips Tax Tips Tax Benefits for Military Families Tax Planning TurboTax and Designing Spaces Help You Get Your Financi…
The Student Loan Interest Deduction really helps. I heard that the Government is going to forgive upwards of a trillion dollars in student debt. Any truth to that? Reply