Education

Question 1

Education Funding Years

Answer 1

UGMA/UTMA: subject to kiddie tax if child under 24

EE Educational Bonds: PARENT OWNED, cant have in UGMA/UTMA

COVERDELL: limited to $2,000 per year

529: college savings or prepaid tuition. $16k or $80k for 5 years

Question 2

College Years: Grants/Loans

Answer 2

WEALTHY:
- Parental Loan “PLUS”
- Undergraduate Students
- “wealthy parents are a plus”

POORISH: (less than $60k income)
- Pell Grants
- Supplemental Education Opportunity Grant
- Subsidized Stafford Students Loans

Question 3

College Years: tax credits/ distributions, withdrawals

Answer 3

USE ONLY ONE

American Opportunity: $2,500 ($2k, then 25% of next $2k). undergrad only

Lifetime Learning Credit: $2k max. undergrad, grad, continuing education

Coverdell withdrawal: must be used before student is 30

529: no MAGI phase out

Misc: gifts, earnings, UGMA, UTMA, 2503(c) funds can be used

Question 4

ucationCollege Years: graduate years

Answer 4

Fullbright Scholarship
Stafford Loan
529 distribution or Coverdell withdrawal