What are some tax advantages for school?
- June 30, 2023
- David Greene
- Comments Off on What are some tax advantages for school?
Here are some school related tax tips. (1) Although private school tuition is not deductible, the child care component of the tuition is deductible for kids under 13. (2) Also for kids under 13, before and after school care may be deductible. (3) A portion of the money you pay for school fundraisers may be deductible (less the fair market value of goods you receive.) (4) Earnings in 529 plans are not federally taxable as long as the money is used for educational purposes. (5) Student loan interest is generally deductible up to $2,500. (6) There is a tuition and fees credit for qualified education expenses when paid for higher education. (7) The American Opportunity Tax Credit provides relief in several ways too numerous to list here, so you should talk to your accountant about what may apply to your situation. Finally, moving expenses from home to college are not deductible.