EDUCATION CREDITS AND DEDUCTIONS

QUALIFIED EDUCATION EXPENSES AND 529 PLANS

Think all distributions from earnings from 529 plans are tax free because you used them all for educational expenses? — Think Again!

There are certain instances where that is not true.  Are you utilizing the American Opportunity or Lifetime Learning Credit?  Did you take a tuition deduction?  Are you relying on the 1098-T form?  These all alter the “equation”.
Essentially there is a limit as to how much educational expenses may be included to obtain a credit or a tuition deduction  However it is important for you to supply us with all your educational expenses.  Examples are below:
  • Tuition & fees
  • Room and board
  • Books and supplies
  • Computers and related equipment
  • Insurance requirements
  • Sports expenses and health club dues
  • Electronics and smartphones
  • Transportation and transporting costs
  • Repayment of student loans