Tax tips for student loans, education expenses, and 529 plans

Taxes: Education

Know the Tax Rules when Changing College Plans


A 529 plan is a great way to save for college. Is there a tax hit when shifting from one plan to another? Dr. Don answers this question.

Tax Credits for Higher Education


Are you footing the costs of higher education for yourself or your family? Let your Uncle Sam lend a hand with some tax credits. Two tax credits, the American opportunity credit and the lifetime learning credit, can help students and their parents defray education expenses.

Getting Tax Credit for Education Expenses


"My son will attend a community college to get an associate degree in automotive technology. He is required to buy about $2,000 worth of tools for the classes. Since the tools are required, but not sold by the college, can I write those off as part of his education expenses for school?"

Education Loans Can Provide a Tax Break


A good education is a valuable commodity. It can even pay off for you at tax time if you took out a loan to further your schooling.

How Co-Signer Can Get Deduction for Paying Student Loan


If you co-signed for your kid's student loans and are making the payments yourself, why should they get the deduction? Here is how you can make sure you get the deduction.

Pay Taxes on Savings Bonds for College?


"My aunts and uncles bought numerous savings bonds for me while I was growing up. Now that I'm finally going to college, I'd like to know the tax implications of cashing these in. I understand there is an education program for the bonds, but I'm confused as to my eligibility. Do I qualify for the program?"

" Timing Section 529 Withdrawals


"Do Section 529 withdrawals have to be executed in the same calendar year as the college expense?"

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Take Over Student Loan Debt, Get Deduction?


"My wife's parents are struggling financially, and we would like to take over her parents' student loan obligation that they incurred for her. Is there a way for us to take over the loans and also get the tax benefits?"

Does Your State Offer a 529 Plan Tax Deduction?


"My question is about use of the 529 plans to pay college tuition if there are no rules about the length of time the money must stay in the account. In Missouri, it appears there are no restrictions as to how long money must be in the account before you can make withdrawals to pay for school. Is it possible to funnel money through a 529 to gain the state tax deduction?"

Claiming a Loss in a 529 Plan


"I lost money when I closed my grandchild's 529 plan. Is this loss tax deductible?"

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