If you haven’t gotten your taxes done yet, don’t worry. You’ve still got a few weeks, and you may even be eligible for more deductions and tax credits than you think. Nothing eases tax-season stress like getting your taxes done early, but getting more money back on your tax return is definitely a close second. Learn more about what you can deduct and what credits you have available to you.

Student Loan Tax Deductions: Yes, You Can Write That Off

Nobody likes paying interest on loans. Wouldn’t it be nice if you could get that money back at the end of the year? Guess what–you can… sort of. If you’ve taken the student loan out in your own name, writing it off is pretty straightforward. Here’s the cool part: you can write off the interest for loans that your parents paid for if you are legally liable for the loan and you aren’t claimed as a dependent. The IRS treats the money that your parents paid as if they gave you a gift that you used to pay off the loan.

Even if your parents aren’t involved in the financial side of things, you can write off up to $2,500 in student-loan interest.You don’t even have to itemize to take this deduction, making it that much easier.

Tax Credits for Students

Deductions are great, but credits are better. While deductions just reduce the amount you’re taxed on, credits actually cut down what you pay–dollar for dollar.

• Parents going to school (even working parents who aren’t in school) can qualify for a child-care tax credit. From Kiplinger:

If you pay your child-care bills through a reimbursement account at work, it’s easy to overlook the child-care credit. Although only $5,000 in expenses can be paid through a tax-favored reimbursement account, up to $6,000 (for the care of two or more children) can qualify for the credit. So, if you run the maximum through a plan at work but spend even more for work-related child care, you can claim the credit on as much as $1,000 of additional expenses. That would cut your tax bill by at least $200.

• The Hope Credit is in the process of being replaced by the American Opportunity Tax Credit for the 2009 and 2010 tax years. Both of these credits help you get back some of what you spent on books, tuition, and other school fees, and this year you can pick the one that works best for your situation. The $1,800 Hope Credit has been expanded and improved, thanks to the economic stimulus package. With the new American Opportunity Tax Credit, you can qualify for a rebate of up to $2,500 for the first four years of college for qualifying students (a nice change from the Hope Credit’s only covering the first two years of school). There are still some income limits on this credit, but they’ve been raised to $80,000 or less for individuals and $160,000 or less for married couples filing jointly–after that, the credit is reduced or completely eliminated.
• The Lifetime Learning Tax Credit is very similar to the Hope and American Opportunity Credits, but it can be used for nearly any kind of postsecondary education. If you qualify, you may be able to claim $2,000 per tax return–up to $4,000 total. If you’ve already taken advantage of (or don’t qualify for) the aforementioned credits, this one is for you.

Tax Tips for Students

There are a few little things that can help you out when it’s time for taxes.

• For school-related expenses, keep those receipts!
• Get your taxes done now, not later–midterms are way harder when you’ve got taxes looming
• Don’t feel guilty; write it off!
• When in doubt, talk to the professionals

This year in particular, there are plenty of tax credits for students, parents, first-time home buyers, and a host of others. Chances are, you fall into at least two categories, so make sure you do your tax homework before filing.