Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Tuition Tax Credit

Consider paying Spring 2013 tuition before December 31, 2012, or you may not be able to write it off next year.

For all of you with college students:

Unless Congress acts soon or reinstates the American Opportunity Tax Credit it will expire December 31, 2012. For 2012 the tuition tax credit phases out between 160,000 and 180,000 of modified AGI for joint filers (80,000 and 90,000 for single filers).

Tax planning strategy:

Pay spring 2013 semester tuition prior to December 31, 2012. As long as the tuition is paid in 2012, you can claim the credit this year. Better to be safe than sorry if Congress does not act and this enhance credit, (over the Hope credit of the past), is allowed to disappear.

Qualified expenses besides tuition and required fee for enrollment include course materials, i.e. books, supplies, and equipment needed for a course of study. Materials are not required to be purchased from the school.

If you have questions about the tuition tax credit or tax planning, please contact me online or call (239)384-9688 in Naples or (239) 768-5008 in Fort Myers. Interested in learning more about charitable donations, organizations and other tax credits? Visit the frequently asked questions page on my website. Want more information about tax deductions, social security, or retirement? Check out my FREE eBook Library.

-Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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