Education Expenses Flashcards
<p>Gifts to UGMA/UTMA, Coverdell and 529 plans are gifts of \_\_\_\_\_\_\_ in Teresa.</p>
<p>Present, annual exclusion applies to present interest</p>
<p>American Opportunity Credit (AOC)</p>
<ul><li>2000 + 25% of next 2000 (max 2500 tax credit)</li><li>MAGI Phase Outs on Tax Sheet</li><li>First Four Years of College Only</li></ul>
<p>Lifetime Learning Credit</p>
<ul><li>2000 max</li><li>any higher institution</li><li>MAGI Phaseouts on Tax Sheet</li></ul>
<p>Coverdell</p>
<ul><li>Limited to 2k/year contribution per recipient</li><li>Must be used before student is 30</li><li>MAGI Phaseouts on tax sheet</li></ul>
<p>529 (QTP) Distribution</p>
<p>College Savings or Prepaid Tuition</p>
<p>No MAGI Phaseouts</p>
<p>Gift limits apply</p>
<p>Lump sum up to 80k per individual giver every 5 years</p>
<p>Maximum contribution amount is set by state</p>
<p>one transfer allowed within 12 month period</p>
<p>up to 10k total in student loans</p>
<p>up to 10k per year for k-12</p>
<p>UGMA/UTMA</p>
<ul><li>Subject to Kiddie Tax for children under age 24</li><li>Trust rates apply</li><li>UTMA allows real estate</li></ul>
<p>EE Education Bonds</p>
<ul><li>Parent Owns Bond</li></ul>
<p>PLUS Loan</p>
<ul><li>Undergraduate Only</li><li>Income above 60k</li><li>Parent Takes Loan</li></ul>
<p>Poorish Parents for Undergraduate Years</p>
<ul><li>Pell Grants</li><li>Supplemental Education Opportunity Grant</li><li>Subsidized Stafford Student Loan</li></ul>
<p>Graduate Years</p>
<ul><li>Fulbright Scholarship</li><li>Stafford Loan</li><li>529/Coverdell under 30</li></ul>
<p>Kiddie Tax</p>
<p>Applies to Kids with unearned income greater that 2300 (indexed for inflation)</p>
<p>Children must have one living parent</p>
<p>child gets 1150 standard deduction</p>
<p>the next 1150 is taxed at child's income tax rate of 10%</p>
<p>above the 2300, taxed at parent's marginal tax rate</p>
Student Loan Forgiveness Programs
Pay as you earn program may cap loan pmts at 10%
Public Service Loan Forgiveness - 10 yrs in qualifying field
Total and Permanent Disability Discharge-can be monitored for 3 years
Teacher Loan Forgiveness TK-12 low income for 5,000-17,500 forgiven (PLUS loans do not qualify)
PLUS Loan Forgiveness-if parent or child dies or parent becomes totally and perm disabled
