savings

529 Plans Offer Two Tax-Advantaged Education Funding Options

Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. And one of these plans got even better under the Tax Cuts and Jobs Act (TCJA).

Enjoy valuable benefits

529 plans provide a tax-advantaged way to help pay for qualifying education expenses. First and foremost, although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. In addition, some states offer tax incentives for contributing in the form of deductions or credits.

But that’s not all. 529 plans also usually offer high contribution limits. And there are no income limits for contributing.

Lock in current tuition rates

With a 529 prepaid tuition plan, if your contract is for four years of tuition, tuition is guaranteed regardless of its cost at the time the beneficiary actually attends the school. This can provide substantial […]

By |October 12th, 2018|child, education credit, expensing, New Tax Laws, savings|0 Comments

Here is a list of 10 deductions individual taxpayers may overlook


Now that all the 2011 tax deadlines have passed, it is a perfect time to start planning for the next tax season.
Here is a list of 10 deductions individual taxpayers may overlook provided by Bankrate.com:
  1. Additional charitable gifts – everyone knows the donation itself is a deduction, but did you know certain expenses are deductible as well?  For example, you could be reimbursed charitable miles at $0.14 per mile, the cost of any supplies bought for the group, and if a uniform is required, you could deduct the cost of that uniform and its cleaning bills.
  2. Moving expenses – there are many moving expenses you can deduct when you relocate.  For example, even your first relocation after college to start a new job is deductible.
  3. Job hunting costs – costs related to searching for a new job in your current profession can be […]