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.
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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.