The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: selling stock to pay for school||Date: 5/1/2013 6:38 PM|
|Author: inparadise||Number: 118562 of 121568|
The Coverdell is the account you can take funds out of for school without taxation. Taking it from the UTMA only allows you to get taxed at your son's tax bracket.
When we cashed in Eldest's Coverdell last year to pay for college, we got a tax doc from the administrator of the account showing the withdrawal, which we offset with the document the university sent with qualifying amounts paid. No taxes were required on our part.
a parent, not a tax pro
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|