• Skip to main content

Bank of North Dakota

  • College Handbook
  • Blog
  • Video
  • Get Educated
  • Contact
  • bnd.nd.gov
  • Search

Scholarships & Grants

Save Your Money! 5 Tax Credits for Taxpayers with Students in College

By Amanda Woidyla

For a scholarship to be “qualified,” or tax free, your student must be a candidate for a degree. He or she is also required to only use the funds for tuition, fees, books and supplies. Any amount received for incidental expenses is not a tax free, qualified scholarship. Incidental expenses include room and board, transportation and payments for research.

Fortunately, there are a few tax credits and deductions available to taxpayers while they have students in college. These include:

  1. American Opportunity Credit: available for the first four years of college
  2. Lifetime Learning Credit: available if a taxpayer or dependent is taking college classes to improve job skills
  3. Tuition and fees deduction: allow taxpayers to deduct qualified college expenses for themselves or a dependent
  4. Student loan interest deduction: allows taxpayers to deduct up to $2,500 per year on federal taxes for interest paid on student loans
  5. College SAVE plan deduction: allows North Dakota taxpayers to deduct up to $5,000 (up to $10,000 for married couples) of College SAVE plan contributions from their North Dakota state taxable income

Visit with a certified public accountant to learn how these tax credits may impact you.

Amanda Woidyla

Amanda Woidyla is the University and Student Development Coordinator at BND, which is a long title for “I help students plan and pay for college and plan TO pay for college.” She coordinates College Application Month, North Dakota’s branch of the American College Application Campaign and REALLY likes public speaking. Outside of work, Amanda likes to ride bikes, do yoga and pet other people’s dogs.

You will also like:

Resume-Building-Stand-Out-post
Housing-On-Off-Campus-post
Tax-Time-post

Bank of North Dakota

Copyright © 2023 · Bank of North Dakota

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT