More tax tips: educational expenses, health care, Earned Income Credit Published March 11, 2015 By 1st Lt. Deepa Patel Chief, Legal Assistance SCOTT AIR FORCE BASE, Ill. -- When it comes to taxes, first-time filers can get caught up in learning the big picture and overlook the salient details. But many benefits exist beyond residency, combat pay and charitable donations. What are the tax implications of educational expenses? How does health insurance get factored into tax forms? What exactly is this Earned Income Credit everyone keeps talking about? Educational Expenses Your education costs can be included in your tax return in three ways: Student loan interest deductions, tuition and fees deductions, educational expenses. "You're eligible to claim a student loan interest deduction if you paid interest on a qualified loan during the 2014 tax year," said Capt. Aaron Jones, Assistant Staff Judge Advocate. "But you cannot be married and be filing separately, and your modified adjusted gross income has to be a specified amount." If you're claiming a deduction based on your student loan interest, the amount that you deduct must equal the amount of interest you paid on the loan, or $2,500, whichever is less. Members and spouses may also deduct certain tuition and fees that qualify. Those deductions do not have to be itemized. Alternatively, tuition and fees may also be claimed as an American opportunity tax credit, lifetime learning credit, or applicable business expense. Certain limitations do apply, however. "The deduction could be reduced or eliminated if your modified adjusted gross income is greater than what is allowed by your filing status," Jones said. Educational expenses related to work can also be deducted if they maintain or improve job skills, are required by your employer, or are mandatory under the law. However, the education must relate to your work. Examples of deductible expenses include tuition, books, supplies, lab fees, and similar items as well as certain transportation and travel costs. Health care coverage Under the Affordable Care Act, all individuals are required to maintain basic healthcare coverage. Those who do not have this coverage may be required to pay a fee for each month that they are not insured. Servicemembers and dependents who have Tricare automatically have the minimum essential coverage required by law. So what does that have to do with taxes? "Essentially, as long as you maintain Tricare coverage, you will not have to incur additional fees," explained Jones. "But you need to check the appropriate box on your tax forms indicating that you have met the requirement." Earned Income Credit The Earned Income Credit is aimed to help working individuals reduce the amount of tax they owe (if any). It also may give a refund. "This is a credit that is designed to assist individuals whose earned income and adjusted gross income is less than $14,590 each," Jones said. "It is available to U.S. citizens who are at least 25 years old but under 65 at the end of the year." There is also a residency requirement. Individuals who qualify under this credit must maintain their primary residence inside the United States for more than 6 months of the year. Military personnel stationed overseas are still considered to live in the United States. For more detailed information on taxes, see IRS publication 3 (The Armed Forces' Tax Guide) at irs.gov.