Tax Information
If you or someone in your family is currently paying higher education costs, you may be eligible for a number of tax benefits. These include education tax credits, deductions for higher education expenses and loan interest, tax-free withdrawals from certain savings plans and participation in college savings plans. Below is a glimpse into these tax benefit options. It is intended for informational purposes only, not as legal or tax advice. Please consult your personal tax advisor to determine what is best for you and your family, as well as your eligibility for each option.
There are a few things not outlined in the charts available below that also can affect your taxes. For example, if your student receives monetary amounts from scholarships, fellowships, grants, or tuition reductions, the items may not be taxable. Also, two other tax-wise options for the non-traditional student include Employer-Provided Educational Assistance and the Business Deduction for Work-Related Education. Please consult your tax advisor for more information regarding these items.
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Taxpayer Relief
Expenses that you incur for higher education offer you several ways to reduce your income taxes. If you plan carefully before you incur these expenses, you will receive the full benefit of the following tax breaks.
Tax-wise Investing
No matter where you and your child are on the journey toward higher education, it is never too late to start saving. Your child’s education could be one of the biggest investments either of you ever make. If you have more than one child, obviously that financial commitment grows. However, families with a desire to save for education now have more options to help you get started in determining what is best for your family. Planning and saving early can put the cost of higher education within your reach.
