4 tax breaks millennials can't afford to miss

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Watch a Millennial Figure out How to Pay His Taxes

Tax season has begun and while the April deadline seems far away, there's no time to waste. Snagging a few tax breaks can boost your refund or lower your tax bill. But you could miss out on them if you wait until the last minute to file. If you're in your 20s, here are some key tax deductions and credits to watch out for.

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1. Retirement Saver's Credit

The IRS offers the saver's credit to individuals who sock away money in a retirement account. Currently, the credit is good for up to $1,000 for single filers and $2,000 for married couples. To qualify for the credit, your income must fall below a certain threshold. For single filers, the most you could earn in 2015 was $30,500 if you wanted to claim the saver's credit.

So why should millennials try and cash in? When you're still in your 20s or your early 30s, you're probably not making a lot of money. If you're under the credit's income threshold, you can pad your retirement account and reduce your tax liability at the same time.

2. Earned Income Credit

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Like the saver's credit, the Earned Income Credit is geared toward lower-income workers. That's why it's perfect for millennials who aren't bringing in big bucks. As long as you're at least 25, you have earned income within the IRS limits and no one can claim you as a dependent, you'll probably be able to snag the credit.

For the 2015 tax year, the maximum credit is worth $503 if you don't have kids. The value of the credit climbs to more than $6,200 if you have three or more children. So it can be helpful to millennials who have already started their own families.

Related Article: All About Tax Credits

3. Lifetime Learning Credit

If you're paying some or all of the cost of earning a degree out of pocket, you may be able to claim the Lifetime Learning Credit. The credit – which maxes out at $2,000 for the 2015 tax year – applies to qualified education expenses at colleges and universities that are eligible to participate in federal student aid programs.

Many millennials probably don't need to worry about the income cut-off when claiming the tax credit because the income limit is relatively high. For tax year 2015, single filers can qualify with a modified adjusted gross income of $64,000. The limit doubles for married couples filing a joint return.

If you've already started making payments on your student loans, you may be able to deduct some of the interest. Deductions reduce your taxable income for the year, which can drive down your tax bill. This deduction is good for up to $2,500 if you qualify based on your income and your filing status.

4. Moving Expense Deduction

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If you moved in the last year because you switched employers, you may be able to write off some of the expenses on your taxes. The IRS lets you claim a deduction for moving expenses if you're starting a new job as long as it's more than 50 miles farther from your old home than your previous job location was. The kinds of things you can deduct include driving expenses, shipping and storage fees and the cost of hiring a moving van.

Related Article: How Tax Breaks Make College More Affordable

Good Recordkeeping Is a Must

If you're planning to claim deductions for moving expenses or student loan interest, keep in mind that you'll need the appropriate records to back them up. Hanging on to receipts, bank statements and credit card statements can keep you out of hot water if you're audited.

Photo credit: ©iStock.com/damircudic, ©iStock.com/sturti, ©iStock.com/Cathy Yeulet

The post 4 Tax Breaks Millennials Can't Afford to Miss appeared first on SmartAsset Blog.

Related: Important tax dates to know.

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Important tax dates to know
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4 tax breaks millennials can't afford to miss

January 15, 2016: Those who are self-employed or have fourth-quarter income that requires payment for quarterly estimated taxes must have them postmarked by this date

(Photo via Tetra Images/Getty Images)

April 18, 2016: Individual tax returns are due for the 2015 tax year

(Photo via Alamy)

April 18, 2016: Requests for an extension on filling out your taxes must be filed by this date

(Photo by Chris Fertnig via Getty Images)

April 18, 2016: Those who are self-employed or have first-quarter income that requires payment for quarterly estimated taxes must have them postmarked by this date

(Photo via Alamy)

April 18, 2016: This date is also the deadline to make a contribution to an IRA account for 2015

(Photo by Garry L., Shutterstock)

June 15, 2016: Those who are self-employed or have second-quarter income that requires payment for quarterly estimated taxes must have them postmarked by this date

(Photo via Shutterstock)

September 15, 2016: Those who are self-employed or have second-quarter income that requires payment for quarterly estimated taxes must have them postmarked by this date

(Photo via Shutterstock)

October 17, 2016: 2015 tax returns that received an extension are due by this date

(Photo by Juan Camilo Bernal via Getty Images)

October 17, 2016: Today is the last chance to recharacterize a traditional IRA that was converted to a Roth IRA during 2015

(Photo via Getty Images)

January 15, 2017: Those who are self-employed or have fourth-quarter income that requires payment for quarterly estimated taxes must have them postmarked by this date

(Photo by Pascal Broze via Getty Images)

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