TWTS Education Resources

 

Education Savings Bond Income Limits

You may be able to exclude all or part of the interest from qualifying Series EE or Series I bonds if you use the income for qualified educational expenses. You cannot take this benefit if your modified adjusted gross income is than $89,700 or more ($142,050 if you file jointly, or if you file as Qualifying Widow(er) with Dependent Child).

American Opportunity Tax Credit

The American Opportunity Tax Credit expanded on the Hope Credit. The income limits are higher, the credit is available for more qualified expenses, and you can use the credit for four years of post-secondary education instead of just two. In addition, you can even get a refund if you don't owe any tax for up to 40% of the credit ($1,000).

Tuition Expense Deduction

You can still deduct tuition expenses as an adjustment to income, even if you don't itemize your deductions. You generally take the tuition expense deduction if you don't qualify for an education credit or other tax break for the same expenses.

Coderdell Education Savings Accounts - Increased Limits

The new, permanent contribution limit is $2,000 per year. This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. Taxpayers with modified adjusted gross income less than $110,000 ($220,000 if filing a joint return), may be eligible to contribute to a Coverdell ESA. There are no limits on the number of separate Coverdell accounts that can be established for a beneficiary, but the total of all contributions to a single beneficiary cannot exceed $2,000 each tax year.

What is the Tax Benefit of the Coverdell ESA

Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.

529 Plan Contributions

Many states offer tax benefits for 529 Plan Contributions however some are restricted to contributions to their individual state plan, feel free to contact me regarding such and contribution deadlines as many allow you to contribute until April 15, 2015 for the 2014 tax year.

 

 

Education Documents

2016

2016 Educational Deductions

Other

Educational Expenses PDF Document

Educational Expenses Excel Document

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