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College Tax Tips and Financial Information

Don't report nontaxable scholarship amounts on your tax return. Taxable amounts are included with wages, even if the scholarship amounts aren't shown on a W-2 form.

Scholarship Tax Tip

Your Coverdell ESA

Contributions to a Coverdell ESA are not tax deductible, but money deposited in the account will grow tax-free until distributions are taken.
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Tax Terminology

Foreign tax credit

  • A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee's salary is withheld and placed in a savings account or the company's profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59½ or when the employee retires or leaves the company.


Financial tax tips, help, planning, and advice for college students or parents of college students.

Reducing the Cost of Higher Education

September 03, 2012

With kids going off to college in September, the fact of higher educational costs is now impossible to ignore. As you or your child navigate campus, you are now in position to start navigating the possible tax implications of your new-found college expense. Outlined here are three of the more popular ways to reduce your taxes in 2012 as a result of this educational expense burden.

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Coverdell Education Savings Account (ESA)

November 29, 2010
Time to roll it over into a 529 plan?

Section 529 plans may only be used to pay for qualified higher education (post-secondary) expenses. Currently, Coverdell ESAs may be used to pay for qualified higher education expenses or qualified elementary and secondary education expenses (K-12). However, unless a new law extends this provision, Coverdell ESAs can no longer be used for K-12 expenses after 2010.
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American opportunity tax credit

August 10, 2010
Should your child claim the credit?

The AOTC is a partially-refundable tax credit to help make college more affordable. A refundable tax credit allows a taxpayer to receive a refund if the amount of the taxpayer’s tax credit exceeds the taxpayer’s income tax liability. The AOTC is refundable up to a maximum of 40 percent ($1,000) of the maximum tax credit of $2,500.
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Lifetime Learning Credit

November 01, 2009
The Lifetime Learning Credit can help offset some of the expenses of continuing your education.
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Hope Credit

November 01, 2009
The Hope Credit can help with the cost of higher education for each qualifying student in the first 2 years of college or vocational school.
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Saving for Education

October 08, 2009
For some, a 529 Plan is the best investment plan to pay for school. This is true for people trying to play catch-up, or those having a windfall to put into a college savings account. But Coverdell Education Savings Accounts are another great way to start a nest egg for those little ones you hope to send off to college one day.
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