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Financial Planning / Tax Strategies
|Subject: Re: Paying for college||Date: 6/19/2008 5:33 PM|
|Author: Hohum77||Number: 101112 of 120798|
1st question: Are there any kind of tax breaks when paying tuition for a dependent?
There are at least four education tax breaks that I am aware of-
1. Hope credit
2. Lifetime learning Credit
3. Education IRA (Coverdell)
4. Interest deduction on education loans
The first two are an either/or for a student.
2nd question: ...
I'm not sure you want your son as the primary on joint savings/checking accounts. Why not just simplify things and pay the tuition from your current account and open the higher interest account as a separate account? Also, unless your son is living at home, there is a reasonable chance there are equivalent or better banking resources near, or at, his college/university.
I think the IRS document you need is Pub 970
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