Education

The most frequently asked tax questions related to Education
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Educational Tax Benefits

2018-Eligible educators deductions

Asked Thursday, December 20, 2018 by an anonymous user
The $250 (as adjusted for inflation) deduction for eligible educators remains at that level.
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Educational Tax Benefits

Claiming Non dependents tuition

Asked Tuesday, February 26, 2013 by an anonymous user
To claim the American Opportunity credit or Lifetime Learning credit you must pay qualified expenses for yourself, your spouse or dependents claimed as exemptions on your tax return.
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Educational Tax Benefits

Teacher - deductible expenses

Asked Tuesday, January 15, 2013 by an anonymous user
Elementary and secondary school teachers can deduct from gross income up to $250 of qualified expenses they paid during the year. If spouses are filing jointly and both were eligible educators, the maximum deduction on the joint return is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses.
The deduction expired for tax years beginning after 2011. ATRA, extends the deduction through tax years beginning before 2014.
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Educational Tax Benefits

Student Loan interest - 2013

Asked Thursday, April 05, 2012 by an anonymous user
The $2,500 maximum deduction for interest paid on student loans begins to phase out for a married taxpayers filing a joint returns at $125,000 and phases out completely at $155,000,
For single taxpayers, the phase out ranges between $60,000 and $75,000.
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Educational Tax Benefits

Do payments to my grandchild's tuition reduce the annual gift tax exclusion?

Asked Saturday, March 10, 2012 by an anonymous user
Contributions to your grandson's tuition directly does not reduce the annual gift tax exclusion of $13,000. The gift tax exclusion for paying another's tuition or medical expenses directly is unlimited.
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Educational Tax Benefits

Employer Reimbursements - Accountable Plan

Asked Tuesday, February 28, 2012 by an anonymous user
If you are reimbursed under an accountable plan, your employer should Not include any reimbursement in your income in box 1 of your Form W-2.
To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules.
Your expenses must have a business connection—that is, your expenses must be deductible under the rules for qualifying work-related education.
You must adequately account to your employer for your expenses within a reasonable period of time.
You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time.
If your expenses are more than your reimbursement, you can deduct your excess expenses on Form 2106.
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Educational Tax Benefits

Employer Reimbursements - Education = Nonaccountable Plan = W-2 box 1

Asked Tuesday, February 28, 2012 by an anonymous user
You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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College Costs & Taxes

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user
You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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Educational Tax Benefits

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user
You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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Educational Tax Benefits

Educational Assistance Plans

Asked Tuesday, February 28, 2012 by an anonymous user
You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year.
Graduate school expenses qualify as well as undergraduate courses.
Payments are tax free provided that the courses do not satisfy the employer's minimum educational standards and do not qualify the student for a new profession.
Educational assistance means amounts you pay or incur for your employees' education expenses.
These expenses generally include the cost of books, equipment, fees, supplies, and tuition. These expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education has a reasonable relationship to your business, or is required as part of a degree program.
Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course.
They do not include the cost of lodging, meals, or transportation.
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