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

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

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December 21, 2021 , ,

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

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

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Back-to-school tax breaks on the books

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September 2, 2020 , , ,

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 , ,

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.

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Use a Coverdell ESA to help pay college, elementary and secondary school costs

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October 15, 2019 ,

Coverdell ESA

There are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is due when the funds in the account are distributed, to the extent the amounts withdrawn don’t exceed the child’s qualified education expenses.
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