Category Archives: Education Planning

Education Tax Credits

It’s tax time, and your kitchen table is littered with papers and forms. As if this isn’t bad enough, you recently paid your child’s college semester bill, and you don’t know where you’ll find the money to pay the taxes … Continue reading

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Are my student loan payments tax deductible?

Question:  Are my student loan payments tax deductible? Answer:  The interest portion might be, thanks to the student loan interest deduction. The maximum deduction is $2,500 in 2013. You don’t need to itemize to claim this deduction. To qualify, you … Continue reading

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Summary of Tax-Advantaged College Savings Options

Federal tax-deferred-growth and tax-free earnings when withdrawals are used for qualified education expenses: 529 Plans 529 college savings plan: You open an individual investment account and direct your contributions to one or more pre-established investment portfolios offered by the plan. Typically, … Continue reading

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Qualified Education Expenses Defined

The term “qualified education expenses” is used frequently in education circles, but it can mean various things depending on the context. This table describes what the term means in specific situations. (Note: The term “post-secondary education” includes graduate school unless … Continue reading

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Comparison of Education Tax Credits and Deductions

American Opportunity credit Lifetime Learning credit Student loan interest deduction Deduction for qualified higher education expenses Credit/deduction applies to Qualified tuition and related expenses for first four years of undergraduate education Qualified tuition and related expenses for courses taken throughout … Continue reading

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Advantages and Disadvantages of 529 Plans

Advantages People of all income levels are eligible to contribute to a 529 plan 529 plans have high contribution limits (most plans have contribution limits of $300,000 and up) College savings plans are open to residents of any state At … Continue reading

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Education Tax Credits

It’s tax time, and your kitchen table is littered with papers and forms. As if this isn’t bad enough, you recently paid your child’s college semester bill, and you don’t know where you’ll find the money to pay the taxes … Continue reading

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The ABCs of 529 Plans

If you’re already saving for college, you’ve probably heard about 529 plans. 529 plans are revolutionizing the way parents and grandparents save for college, similar to the way 401(k) plans revolutionized retirement savings. Americans are pouring billions of dollars into … Continue reading

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Income Tax Planning and 529 Plans

The income tax benefits offered by 529 plans make these plans attractive to parents (and others) interested in saving for college. Qualified withdrawals from a 529 plan are tax free at the federal level, and some states also offer tax … Continue reading

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Estate Planning and 529 Plans

When you contribute to a 529 plan, you’ll not only help your child, grandchild, or other loved one pay for college, but you’ll also remove money from your taxable estate. This will help you minimize your tax liability and preserve … Continue reading

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