The cost of a college education is higher year after year, with no relief to increases in sight. The annual cost at an Ivy League school is over $60,000 a year; even state schools for in-state student...
If you’re raising children, they may give back to you in the form of tax deductions and credits. Here are some tax breaks you may be entitled to just because they’re your children and you’re sup...
American opportunity tax credit for the first 4 years of higher education Deduction for education that maintains or improves job skills Exclusion of employer-paid education for job-related cour...
Not every expense related to education for yourself or your child is tax deductible or qualifies for tax-free withdrawals from special education accounts. Here are some items you may want tax assistan...
With the fall term just around the corner, students and their families are getting ready for school. They are buying clothing, books, and computers. Payments are being made for tuition and fees. Can U...
The following tax rules expired at the end of 2011, but many likely will be extended for 2012. Keep you eyes on these items—some are personal, others are for business—so you can take advantage of ...
What can you do with a tax refund? Here are some suggestions that can help you generate future tax rewards:Make an IRA or Roth contribution (if eligible) Contribute to a health savings account ...
529 plans are a way to save for higher education on a tax-advantaged basis. Every state offers its own plan; some states have more than one plan. Rules vary from state to state so it's wise to compare...
Distributions can be taken from an IRA before age 59û if the funds are used to pay qualified higher education costs for yourself, your spouse, or dependent. The Tax Court has said that funds used to ...
Normally, the cancellation of a loan results in income to the borrower. But under certain conditions, the cancellation of a student loan can be tax free. There is no dollar limit to this benefit. Exa...
Job-related seminars may be deducted if the conditions for job-related education discussed earlier in this chapter are met. No deduction can be claimed for seminars on self-improvement that are not jo...
This is a financial planning question as much as a tax decision. It depends on your financial situation, where you expect your child to attend college, and other factors. Here are some points to consi...
There are 2 types of qualified tuition programs (QTPs): a prepayment plan under which payments are guaranteed to cover (or partially cover) tuition, regardless of tuition increases, and a savings-type...
If you redeem U.S. savings bonds to pay for qualified higher education costs or to contribute to a 529 plan or Coverdell education savings account, you are not taxed on the interest as long as your MA...
If you pay interest on student loans, you may be able to deduct up to $2,500 of interest as an adjustment to gross income (if your actual interest payment is more than $2,500, your deduction is limite...
If you pay tuition and fees for higher education for you, your spouse, or a dependent, you may be able to deduct up to $4,000 in 2011 as an adjustment to gross income, even if you don't itemize your o...
If certain conditions are met, you can claim a credit of up to $2,000 on your return for the payment of qualified higher education costs for you, your spouse, or your dependent. In contrast to the Ame...
The tax law allows you to claim a limited tax credit, called the American Opportunity credit, when you pay for higher education. The credit applies whether you pay out-of-pocket from savings or borrow...
There are over 20 million scholarships worth more than $1 trillion available each year. If you are enrolled in a degree program at a school and receive a scholarship, fellowship, or grant, you can exc...
Day camp costs for a child under age 13 to enable a parent to work counts toward a dependent care tax credit (the costs of overnight camp do not qualify). Rent out your home for no more than 14 d...
- For purposes of the 3.8% additional Medicare tax on net investment income in 2013, how does this relate to rental income?
- Can I make a direct transfer of my IRA to my church and qualify for tax-free treatment (up to $100,000)? I’m 72 years old.
- I traveled to Africa on a mission trip with my church. I paid for the airfare. Can I deduct it?
- I sold my residence at a loss. How do I report this on my tax return?
Government Benefits
Individuals may receive payments from the federal and/or state government for a variety of reasons. In many cases these benefits may be received entirely tax free.
Most government payments can be received tax free; they are excludable without regard to their amount or your income.
If you must repay Social Security benefits in excess of annual benefits received, you may deduct the excess amounts as a miscellaneous itemized deduction to the extent total itemized deductions exceed 2 percent of adjusted gross income.
Nearly 100,000 refund checks could not be delivered in 2011 because of incorrect addresses. The average amount of each check is $1,547. If you have not yet received an expected refund check, contact the IRS or go to “Where’s My Refund?” (www.irs.gov).
Source: IR-2011-113, Nov. 30, 2011
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