Special Tax Tips for Grads Entering the Work Force

The transition from college to the work force raises some “flags” of which you should be aware. (1) Coordinate your taxes with your parents for things such as your dependency status. (2) You can still claim student loan interest, but the rules after graduation are more complicated, so check with a professional. (3) Work related continuing education is no longer deductible unless it is part of an employer-provided educational assistance program; however, the Lifetime Learning Credit may be available for graduate school. (4) You should consider contributing to your employer’s 401(k) plan or your own IRA to defer taxes.  (5) You should obtain employer-related health insurance or start a health savings account if possible for tax advantages.  I will discuss more tips in my next blog.