Friday, October 20, 2017
Email

Frequently Missed Deductions

College Tuition

Twitter Facebook Linkedin Linkedin Google

Follow on Facebook

Best Accountants in Atlanta
529 Plans Expanded

 Sept. 20, 2009

Tax-free college savings plans and prepaid tuition programs can be used to buy computer equipment and services for an eligible student during 2009 and 2010. These 529 plans — qualified tuition programs authorized under section 529 of the Internal Revenue Code — have, in recent years, become a popular way for parents and other family members to save for a child’s college education. Though contributions to 529 plans are not deductible, there is also no income limit for contributors.

529 plan distributions are tax-free as long as they are used to pay qualified higher education expenses for a designated beneficiary. Qualified expenses include tuition, required fees, books, supplies, equipment and special needs services. For someone who is at least a half-time student, room and board also qualify.

For 2009 and 2010, the ARRA change adds to this list expenses for computer technology and equipment or Internet access and related services to be used by the student while enrolled at an eligible educational institution. Software designed for sports, games or hobbies does not qualify, unless it is predominantly educational in nature. In general, expenses for computer technology are not qualified expenses for the American opportunity credit, Hope credit, lifetime learning credit or tuition and fees deduction.

States sponsor 529 plans that allow taxpayers to either prepay or contribute to an account for paying a student's qualified higher education expenses. Similarly, colleges and groups of colleges sponsor 529 plans that allow them to prepay a student's qualified education expenses.

 

Clients Feedback

"Nicholas is an extremely skilled accountant. He knows just how to guide his clients in the most advantageous ways and is adept at dealing with the IRS. He is highly respected. I recommend him highly."

 

- Robert B. Anderson, Alpharetta, GA

 

You can find what our others are saying about Atlanta Tax & Accounting HERE!

Home Tax News Articles 529 Plans Expanded
Fulton 1099MISC Help, Chamblee 1099MISC Help, Suwanee 1099MISC Help, Loganville 1099MISC Help, Roswell 1099MISC Help,
View all articles
Atlanta cpa, cpa Atlanta, Roswell cpa, Atlanta accounting, Lawrenceville cpa, accounting Atlanta, Alpharetta cpa, Lawrenceville accounting, Marietta cpa.
Norcross accounting, cpa Marietta, Norcross cpa, Roswell accounting, cpa Norcross, cpa Cumming, Decatur cpa, cpa Lawrenceville.
Copyright © 2017. CPA Taxation. Web Design & SEO Plans
by Nicholas Trishin
770-685-2500