College Costs Archives - Page 2 of 3 - Milliken, Perkins & Brunelle

There’s a deduction for student loan interest … but do you qualify for it?

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December 21, 2021 Kevin Brunelle college cost, education expense, student loan

student loan tax

If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. The answer is yes, subject to certain limits. The maximum amount of student loan interest you can deduct each year is $2,500. Unfortunately, the deduction is phased out if your adjusted gross income (AGI) exceeds certain levels, and as explained below, the levels aren’t very high.

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ROI on Bachelor’s Degrees

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November 21, 2021 Kevin Brunelle education expense

Fun fact: Why bachelor’s degrees still provide a high return on investment.

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Scholarships are usually tax free but they may result in taxable income

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August 10, 2021 Kevin Brunelle college cost, scholarship

scholarship tax

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition.

Continue Reading: Scholarships are usually tax free but they may result in taxable income

You may have loads of student debt, but it may be hard to deduct the interest

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July 27, 2021 Kevin Brunelle student loan

student loan interest

More than 43 million student borrowers are in debt with an average of $39,351 each, according to the research group EducationData.org. If you have student loan debt, you may wonder if you can deduct the interest you pay. The answer is yes, subject to certain limits. However, the deduction is phased out if your adjusted gross income exceeds certain levels — and they aren’t as high as the income levels for many other deductions.

Continue Reading: You may have loads of student debt, but it may be hard to deduct the interest

Tax-favored ways to build up a college fund

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June 15, 2021 Kevin Brunelle 529 plan, AGI, college cost, Coverdell ESA, Savings Bonds

college fund taxes

If you’re a parent with a college-bound child, you may be concerned about being able to fund future tuition and other higher education costs. You want to take maximum advantage of tax benefits to minimize your expenses. Here are some possible options.

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Educate yourself about the revised tax benefits for higher education

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January 12, 2021 Kevin Brunelle American Opportunity Tax Credit, Consolidate Appropriations Act, higher education tax credit, lifetime learning credit, tuition and fees deduction

higher education tax credit

Attending college is one of the biggest investments that parents and students ever make. If you or your child (or grandchild) attends (or plans to attend) an institution of higher learning, you may be eligible for tax breaks to help foot the bill.

The Consolidated Appropriations Act, which was enacted recently, made some changes to the tax breaks. Here’s a rundown of what has changed.

Continue Reading: Educate yourself about the revised tax benefits for higher education

How Series EE savings bonds are taxed

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November 10, 2020 Kevin Brunelle Savings Bonds, series EE

Series EE Savings Bonds

Many people have Series EE savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself and put them away in a file cabinet or safe deposit box. You may wonder: How is the interest you earn on EE bonds taxed? And if they reach final maturity, what action do you need to take to ensure there’s no loss of interest or unanticipated tax consequences?

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Back-to-school tax breaks on the books

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September 2, 2020 Kevin Brunelle college tuition, education expense, higher education tax credit, tuition deduction

education tax breaks

Despite the COVID-19 pandemic, students are going back to school this fall, either remotely, in-person or under a hybrid schedule. In any event, parents may be eligible for certain tax breaks to help defray the cost of education.

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Are scholarships tax-free or taxable?

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July 28, 2020 Kevin Brunelle education expense, scholarship, taxable income

taxable scholarships

COVID-19 is changing the landscape for many schools this fall. But many children and young adults are going back, even if it’s just for online learning, and some parents will be facing tuition bills. If your child has been awarded a scholarship, that’s cause for celebration! But be aware that there may be tax implications.

Continue Reading: Are scholarships tax-free or taxable?