If your income is less than $180,000 (married filer) or $90,000 (single), you may be eligible for the American Opportunity Tax Credit while your student is in college. This is a credit of up to $2,500 annually, so nothing to sneeze at. Here’s the catch: You can only take the credit for expenses for which you did not use another tax…
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Tax Credits and Deductions
Generally you need to add your retirement plan contributions back into your income for FAFSA purposes. There is an exception for mandatory contributions such as in many public sector retirement plans. That’s because those are not discretionary, unlike
So, your student is moving out of the dorms and into an apartment this year. Can you still use your 529 funds to pay for housing? Yes. Do they need to save every single grocery store
As you get closer to college, the question of how to pay for it transitions from “how to save for it” to “how to pay the bills for it.” Many families have some savings and supplement that with cash flow and borrowing. The question is always, when do you use savings versus cash flow versus borrowing?
Tax day is approaching and you may be looking for additional deductions for 2015. Can you still make a deductible contribution to your 529 plan? It depends. Since 529 contributions are only deductible at the state level (and only in states that have a tax deduction for the contributions), each state sets its own deadline. Fortunately it’s not as arbitrary…