🎒 Back-to-School Tax Breaks: Credits, Deductions & Smart Planning for 2025

As the school year approaches, it’s a great time to look at how back-to-school expenses can lead to real tax savings—for both families and small business owners.

🎓 For Parents & Students:

1. American Opportunity Tax Credit (AOTC):
Claim up to $2,500 per student for qualified higher education expenses like tuition, fees, and books. Up to $1,000 is refundable—meaning you could receive that even if you owe no taxes.

2. Lifetime Learning Credit (LLC):
Covering a broader range of education—including grad school or job training—the LLC offers up to $2,000 per return.

3. Student Loan Interest Deduction:
If you're repaying student loans, you may deduct up to $2,500 in interest annually, even if you take the standard deduction.

🍎 For Teachers:

Educator Expense Deduction:
Eligible K–12 teachers can deduct up to $300 for classroom supplies (or $600 if both spouses are teachers). Be sure to keep your receipts!

đź§  For Small Business Owners:

Tax-Deductible Education:
Taking a course to sharpen your skills? Buying books or software for professional development? These costs may be fully deductible if they’re related to your current business.

Educational Assistance Programs:
Employers can provide up to $5,250 per year tax-free to employees for education or even student loan repayment.

🛍️ Bonus Tip:

North Carolina no longer has a sales tax holiday—but nearby states like South Carolina and Virginia do. If you’re stocking up on supplies, it might be worth the drive!

Planning ahead now can lead to a lighter tax bill later. Whether you’re buying backpacks or budgeting for college, Tax Pros HQ is here to help you find every deduction.

👉 Need help applying these credits or documenting your deductions?
📅 Let’s chat before school starts!

Next
Next

Mid-Year Payroll & Tax Tune-Up for Small Businesses