Education Flashcards
Contributions to ABLE accounts can only be made in ______
Cash and cash equivalents
For financial aid, ABLE accounts with balances of _____ or under are disregarded
$100,000
Student assets are included in the EFC at what percentage?
20%
Contributions to an ABLE account are limited to what amount annually?
One times the annual gift exclusion
529 accounts can only be used for K-12 tuition up to _______ per year
$10,000
What are the Kiddie Tax amounts?
Unearned income
$1,250 tax free
$1,250 child’s tax rate
Anything above $2,500 at parents high rate
The maximum amount to fund a Coverdell is how much per year?
$2.000 per beneficiary from all sources
What is the age to hold a Series EE bond and why does it matter
24 because the bond is a parental asset for EFC calculations
What is the penalty for non qualified withdrawals from a series EE bond
There is no penalty. Just income tax due.
The AOTC does not apply to ______
Room and board
The $2500 available for AOTC is calculated on….
100% of the first $2,000 of qualified education expanded and 25% of the next $2,000
The rate for inclusion of parent assets in EFC calculations is
5.64% max.
Range starts at 5%
The rate for inclusion of student assets in EFC is …
20%
Student income is included in EFC at what rate
50%
(After an income protection allowance of $7600)
A felony drug conviction disqualifies a student from which credit?
American Opportunity Tax Credit
