Education-Related Tax Incentives Offer Range of Planning Opportunities

The high cost of education is no secret to parents and grandparents who have considered the future. College costs continue to rise and taxpayers in all income brackets are seeking strategies to help them save for college costs. The federal tax code offers a wide range of  ways to help with this daunting task, as shown by Susan Flax Posner, J.D., LL.M., in the May issue of CCH’s Federal Tax Course Letter. There are tax credits for those already paying tuition and fees for higher education as well as savings plans such as the Coverdell Education Savings Accounts that offer future tax benefits. Other provisions, such as direct payment of tuition expenses, allow relatives to avoid gift taxes. Posner walks tax professionals through the full range of education incentives in a common sense fashion that will allow them to best advise clients on the full range of options and to help them choose the options that will work best in a variety of circumstances.

* * * * *

This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting