Before you sign up, you have to figure out how you’re going to pay for college each year. The first step in figuring that out is confirming with the school what has to happen for your aid package to be renewed. Then, consider the additional costs that aren’t included in the award letter—travel to and from school, activities your student…
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Tax Credits and Deductions
Sallie Mae’s annual How America Pays for College report has some good news: In the 2015-2016 school year, the average amount families spent on college went down slightly, to $23,688. The biggest decline came on spending for 2-year colleges; families with students in 4-year schools reported spending about the same as in the previous year. In
Do you need to report 1099 q income on your tax return? As long as none of the distribution is taxable (i.e., you have qualifying expenses to offset it), NO, you do not have to report it. However, you should keep records of your qualified expenses. That’s especially true if the
The PATH Act that went into effect in 2015 includes several changes pertinent to 529 plans. The big ones: Computers, peripherals and Internet access are now qualified expenses. So add any money spent on those to what’s on your 1098-t. People with multiple 529 accounts no longer need to aggregate them to determine how much is taxable earnings in the…
Tax time is upon us and with it, questions about form 1098-t. This is the form colleges use to report qualified expenses. The 1098-t is sent to any student who (or on whose behalf were) paid qualified education expenses. Colleges can report expenses two ways: If the expense is reported in box 1, the college is