When faced with the high cost of college, you want to find and take advantage of every opportunity that you can to cut down on your out-of-pocket expenses, before you give in and take out loans. So after you’ve applied for all of the grants, scholarships, and other non-loan financial aid that you can, it’s [...]
Posts under ‘education’
The Downside of Prepaid Tuition
When planning to save for future college expenses, you may run across several options – including insurance policies, savings bonds, retirement accounts and specific education accounts, such as Coverdell Education Savings and Section 529 plans. Among the options for Section 529 plans are two types of account: savings and prepaid tuition. Following is a brief [...]
20 Questions About 529 Plans
Below is a reprint of an interaction that I had with an anonymous individual several years ago on a web bulletin board, as I thought the 20 questions that the individual listed might be interesting to you. I’ve reviewed the list and updated responses where laws have changed or where I was more snarky than [...]
Coverdell Education Savings Account to Change After 2010
You might want to file this one under the “who cares?” section… Yet another expiring tax provision at the end of tax year 2010 is the expansion of the Coverdell Education Savings Account (ESA) that came into effect with EGTRRA 2001. Through 2010 Until the end of 2010, you are eligible to make non-deductible contributions [...]
Open a Roth IRA for Your Child
Here’s a very good idea to consider – if you have a teenager who has a part-time job, rather than putting those earnings solely into a savings account (or worse, a car), open a Roth IRA. The money contributed to this account will mostly be tax free, since the first $5,700 (2009 figures) of earned [...]
Student Loan Interest Deduction Changes in 2011
In this continuing series I’ve been writing about all the changes you can anticipate to the tax laws beginning in 2010 and 2011. You can go to this page to see the index of all the changes that are coming as a result of expiring provisions from previous years. The ability to deduct interest on [...]
Economic Slowdown Impacts Prepaid Tuition Plans
Several months ago I pointed out an article where the Illinois prepaid tuition plan, CollegeIllinois!, seemed to be elated over the impacts of the economic downturn on other types of 529 savings plans. Essentially these prepaid plans offer a guarantee of value – the cost of a semester of college at an in-state public institution [...]
401(kids)? A Rehash of the Coverdell
With much fanfare, Illinois congressman and US Senate candidate Mark Kirk (R-Illinois) has pushed his plan, adorably referred to as 401(kids) (see news story here). But what is this plan he’s referring to? Unless I’m missing something, this is the Coverdell ESA (Education Savings Account) that has been in existence for quite some time now. Kirk’s [...]
Six Important Facts About the American Opportunity Tax Credit
The IRS recently posted a tax tip (Tax Tip 2009-11) regarding the provisions of the American Opportunity Tax Credit, which was created as a part of ARRA 2009. The six facts reported in the IRS notice are as follows: The American Opportunity Tax Credit, which expands and renames the existing Hope Credit, can be claimed [...]
Tuition and Fees Deduction Expiring At The End Of 2009
At the end of 2009, the current deduction for Education and Fees – post-secondary education, for enrollment at an accredited college, university or other eligible institution – will expire. Under today’s rules, taxpayers may deduct up to $4,000 of the cost of tuition and fees at those eligible institutions, but beginning next year this deduction [...]
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
