Tax Deductions as an Intern
This blog will focus specifically on medical interns, and some of the tax deductions that you should make sure you’re taking. I know that there seems to be a lot things to focus on financially before finishing up your programs, but these are important to look at during and before internship to make sure you’re getting as much financial help as possible. With that being said, let’s look at 4 tax deductions you should take advantage of during your internship.
Lifetime Learning Credit- This is a great tool during internship as it allows you to claim a $2000 credit by filing form 8863 (form may be need to be updated for 2018) on your 1040 when you file taxes. Keep in mind that this will only apply if you have valid educational expenses in that year, so basically tuition.
Student Loan Interest Payment Deduction- The first $2500 of student loan interest is deductible, but make sure to make one $2500 payment at some point in the first half of your internship to make sure you get the deduction.
Saver’s Credit- This is a 10%, 20%, or 50% credit on the first $2000 saved in a Roth IRA. That means you could get back $200, $400, or $1000 just for investing in a Roth IRA. This is dependent on your taxable income level. The benefits of starting early!
Moving Expenses Deduction- Some people may qualify to deduct moving expenses from their taxable income. Check form 3903 (form may need to be updated for 2018) to determine if you qualify.
This is a good list of possible deductions and credits to look into as you prepare for internship. If you have any questions, comment below or send me an email and I’ll be happy to chat.
