The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Paying for college Date:  6/19/2008  5:33 PM
Author:  Hohum77 Number:  101112 of 127616

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

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us