As our students prepare to head back to school, many families face the difficult decision to save for retirement or use those funds to pay for their children’s college education. If you are facing that dilemma, here are some thoughts:
Check the "support" test to maintain dependent deductions
Keep your college student qualified as your dependent by meeting the "support" test. Generally, your child cannot provide over...
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With the start of school just around the corner, it is hard to ignore the high cost of funding a college education. Thankfully, there is some help within the tax code. Outlined here are three of the more popular ways to reduce your taxes in 2014 as a result of this educational expense burden.
Typically you, your spouse, or a dependent who can be claimed as an exemption on your individual tax return
Tuition and fees, course-related books, supplies and equipment
Get 'extra credit' for your kids in college
The price tag on a college diploma keeps going up, but at least you might be able to salvage some tax benefits if you're paying the tab.
An Example: If your child is attending college this fall, you may have a chance to claim an enhanced tax break for higher education expenses.