Category Archives: Tax Credits and Deductions

529s and Private High School Tuition

The recent tax bill that went into effect this year included a change allowing parents to use up to $10,000 annually from a 529 account to pay for private high school expenses. Parents considering taking advantage of this provision should weigh another consideration besides whether or not they have saved enough in their 529 to pay for high school in addition to college: Does your state offer the same benefit? Continue reading 529s and Private High School Tuition

College Savings and Education Outcomes

Did you make a New Year’s resolution to save (or save more) for college? If so, you may be increasing the odds that your student will attend and graduate. Research shows that, across income levels, students who have savings designated for college are more likely to attend and graduate. Overall, the study showed that children who were “expected” to Continue reading College Savings and Education Outcomes

FAFSA Custodial Parent

For divorced parents, figuring out who is the custodial parent for FAFSA filing purposes can be a little confusing. Actually, the rules are pretty simple: the custodial parent is the one with whom the student spends the most time. That’s not necessarily the parent named custodial parent in the divorce decree, or the one claiming the student on their tax return. Continue reading FAFSA Custodial Parent

Tax Reform Bill and College

The tax bill that was finally introduced last week impacts higher education in a number of ways, most of them negative for students and families. Here is a quick summary:

Education tax credits: The bill slightly expands the American Opportunity Tax Credit but eliminates the Lifetime Learning Credit. While the AOTC is more generous than the LLC ($2,500 in tax credits for $4,000 in qualified expenses for the AOTC vs $2,000 in Continue reading Tax Reform Bill and College