Education tax incentives help families cover the costs of college and graduate school. Qualifying expenses vary according to the program, but may include tuition and fees, books, supplies, and room and board.
The American Opportunity Tax Credit covers up to $2,500 of education expenses for the first four years of college. Because 40 percent of the credit is refundable, up to $1,000 can be returned to the taxpayer.
The Lifetime Learning Credit offers a nonrefundable tax credit of up to $2,000 per student each year.
The savings bond education tax exclusion allows people to exclude interest on eligible bonds for education expenses. Eligible bonds include Series EE and I Bonds issued after 1989.
With a student loan interest deduction, taxpayers can claim up to $2,500 of interest paid on student loans as a deduction.
Qualified tuition programs let families set up accounts for education expenses. Although contributions are not deductible, distributions are not taxed. Families can change beneficiaries...
A healthy 25-year-old purchases a $250,000 life insurance policy. He pays $110,100 in premiums over the next 40 years. Between age 65 and 80, he withdraws a total of $314,475. At age 80, he still has $63,121 of cash value and a death benefit of $178,935.
When it comes to IRAs, most people choose conventional investments such as stocks, bonds, and mutual funds through a bank or brokerage house. But people seeking greater control have another option: self-directed IRAs.
This may be the time to buy that new car. February new car sales were the best since 2008. Anxious to extend that sales performance into March and April, and motivated by special “spiffs” (sales incentives) by manufacturers, dealers are eager to make deals.
Two savings plans help families put aside money for college—and let those funds grow tax-free.
A little-known tax requirement may impact international investors. The Foreign Account Tax Compliance Act, effective since March 18, 2010, requires people to disclose any interest on specified foreign assets.
More than nine million people have their identities stolen each year, according to the Federal Trade Commission. The amount of money and time victims lose varies widely. But one thing is for certain: It’s important to keep a close eye on your credit.
Several noteworthy individual tax provisions expired at the end of 2011. Congress may retroactively reinstate some of them. But for now, they’re off the table.
Most people store vast amounts of information on computers and online. Yet few think about what will happen to their digital assets after they’re gone.
With gasoline prices topping $4 a gallon earlier this year, it’s no surprise that people are worried about them. Gasoline and fuel costs represent about 5 percent of consumer costs as given by the Consumer Price Index. In fact, a March survey by the Consumer Federation of America found that 90 percent of respondents said they were concerned about gasoline prices. This is the highest level of concern they have measured in the six years they have been running the opinion poll.
By Steven J.J. Weisman