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Education Tax Breaks

Self-employed? Don’t overlook valuable tax deductions

Leave a Comment / Education Tax Breaks, Federal Income Tax, Home Office Deduction, Independent Contractors, Self Employed, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips, Sole Proprietors, Tax Deduction, Tax-Deductible Business Expenses /

If you’re self-employed, you probably have questions about deducting business expenses on your federal income tax return. Here’s a quick overview of the filing requirements for sole proprietors and independent contractors, and five examples of expense deductions that are commonly overlooked or misunderstood. Filing basics Sole proprietors and independent contractors must report their business activity […]

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Parents: Claim all the tax credits you’re entitled to

Adoption, American Opportunity Tax Credit (AOTC), Child and Dependent Care Credit, Child Tax Credit, Education Tax Breaks, Individual Income Tax, Individual Tax Tips, Lifetime Learaning Credit (LLC) /

Raising a family comes with plenty of expenses, but it may also make you eligible for various tax breaks. Some of the most valuable are tax credits, because they reduce your tax liability dollar for dollar (unlike deductions, which only reduce the amount of income subject to tax). Here’s what you need to know. Child,

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An education plan can pay off for your employees — and your business

Education Tax Breaks, Employees, Small Business, Small Business Owners, Unincorporated Business /

Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127 plans after the tax code section that allows them. Plan basics Sec. 127 plans can cover the cost of almost anything that constitutes education, including

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New option for unused funds in a 529 college savings plan

529 Saving Plan, College Education Expenses, Education Tax Breaks, Roth IRA /

With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax-deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10%

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You may have loads of student debt, but it may be hard to deduct the interest

AGI (Adjustable Gross Income), Deductions, Documentation, Education Tax Breaks, Student Loans /

More than 43 million student borrowers are in debt with an average of $39,351 each, according to the research group EducationData.org. If you have student loan debt, you may wonder if you can deduct the interest you pay. The answer is yes, subject to certain limits. However, the deduction is phased out if your adjusted

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Back-to-school tax breaks on the books

American Opportunity Tax Credit (AOTC), Education Tax Breaks, Lifetime Learaning Credit (LLC), Tax, Tax Credits, Tax Deduction /

Despite the COVID-19 pandemic, students are going back to school this fall, either remotely, in-person, or under a hybrid schedule. In any event, parents may be eligible for certain tax breaks to help defray the cost of education. Here is a summary of some of the tax breaks available for education. 1. Higher education tax

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