education - Herman & Co. CPA

6 FAQs About 529 College Savings Plans

College is a large expense and one worth planning for, especially if you want your future college graduate to start their lives with minimal debt. One common way to prepare for such an expense is to open a 529 college savings plan. What is a 529 plan? College savings 529 plans are state-sponsored savings accounts…

Important Dates In American Tax History Post-1812 Up to The Civil War

The war with the British plunged the new nation into debt and gave rise to protectionist policies being passed. The young nation wanted to protect its newly established manufacturing industries, but the policies started to drive a wedge between the interests of the Northern and Southern states. This set the stage for the Civil War.

Important Dates In Post-Revolution American Tax History

The Revolutionary War was sparked in part by the British imposing taxes on the American colonists without their permission or consent. Once the colonists had freed themselves from British rule, it was time to establish a government that could pay the debts it had incurred during the conflict. 1777 – Articles of Confederation This was…

College Students: The Gray Area of Exemptions

There’s still time to take advantage of last-minute, tax-saving moves for dependency exemptions. For 2014, there are bigger dependency exemptions, as well as rules that, in some cases, are dauntingly complex.

Education Expenses FAQs

There is a limited deduction allowed for higher education and related expenses. In addition, business expense deductions are allowed, without a dollar limit, for education related to the taxpayer’s business, employment included.

Taxes on College Savings Accounts

In recent years, parents have lent an ear to a similar tune: Take the reins of any and every type of tax-advantaged savings account in order to save for your children’s enormous college bills. The message has resonated very clear. A majority of families are now saving for college using on average two types of college savings vehicles.

Coverdell Savings Accounts

The total contributions for the beneficiary (who is under age 18 or is a special needs beneficiary) of this account in any year cannot be more than $2,000, no matter how many accounts have been established.

American Opportunity Credit Helps Pay for First Four Years of College

More parents and students can use a federal education credit to offset part of the cost of college under the American Opportunity Credit. Income guidelines are expanded and required course materials are added to the list of qualified expenses. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

Tax Breaks for Families and Students

Recent legislation made permanent or extended several tax breaks for families. In addition, several education breaks were made permanent or extended.

Tax Incentives for Higher Education

Learn how you can maximize your tax deductions through educational tax incentives.