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Financial Planning / Tax Strategies
|Subject: Paying for college||Date: 6/19/2008 12:57 PM|
|Author: cstillwell55||Number: 101111 of 122917|
My son will be attending college in the Fall and I will be paying mostly in cash.
1st question: Are there any kind of tax breaks when paying tuition for a dependent?
Now the more complicated part:
Currently I have a joint checking and savings account at our credit union. I am the primary and my son (age 18) is the secondary. Meaning the account has my SSN and any interest is reported to the IRS with my SSN. The savings account was opened when he was born. I just found out that the credit union offers an account option for young adults that pays a higher interest rate. To take advantage of this we would have to change the account so that he is the primary which means that interest would now be reported on his SSN.
2nd question: If I use this account to transfer in tuition payments will this be considered a gift and will I run into problems with gift limits and taxes? It will be a joint account and still have my name on it. I just want to make sure that half of any deposits won;t be considered a gift.
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