A college graduate has a lot to be excited about, including finishing school, finding a new job, or even moving out of his or her parents’ house. However, the excitement of jumping in to a new career can quickly diminish once a graduate has to pay his or her first tax bill. Instead of waiting until tax time to find out how much you'll owe, it's wise to learn about potential tax issues in advance so that you can prepare to pay your taxes in the future. 

1. Learn about claiming your own exemption on your tax return.

If you've been in school full-time for the past four years, you're younger than 24 years of age, and your parents have been paying for your needs, then you probably haven't been claiming your own exemption. Depending on your financial situation after graduation, though, it might be time for you to use your own exemption allowance. When you file a tax return, you can deduct up to $3,800 of taxable income right off the top as long as you're providing your own support. If you are living on your own and paying your own bills, you'll probably qualify for this overlooked tax deduction.

2. Start deducting your student loan interest.

As you’re probably aware, you'll have to begin repaying your student loans six months after graduation. The good news is that you can take the sting out of these repayments by deducting the loan interest on your tax return. Unlike home mortgage interest, student loan interest can be deducted right on the front page of Form 1040, which means you don't have to itemize your deductions to claim it. The interest you pay each year is deducted from your total income, so it can reduce your overall taxable income, which could reduce your tax liability. The IRS allows graduates to deduct up to $2,500 in student loan interest each year.

3. Fill out your W-4 properly.

If you're one of the fortunate individuals who find a job right after graduation, you'll likely have to complete a Form W-4. On this form, you'll inform the payroll department how much income tax to deduct from your paycheck. It can be tempting to claim as many exemptions as you can to keep more of your pay, but it can also be costly. If you'll be filing as a single person on your return, you should do the same on your W-4. This will keep you from owing additional tax at the end of the year.

Graduating from college is a great accomplishment. Be sure to set yourself up for financial success by planning out your tax future accordingly.