Your act of generosity,
our longevity

With planned giving, you can provide long-lasting support for the Congregation of St. Joseph while enjoying financial benefits for yourself.

Text Resize
Print
Email
Subsribe to RSS Feed

Monday December 11, 2017

Washington News

Washington Hotline

IRS Highlights Education Benefits

With America's children back in school this fall, the Service highlighted education benefits for teachers and students in IR-2017-163 and 166.

Teachers have three potential benefits. An educator may deduct "above the line" amounts up to $250 so long as they are unreimbursed business expenses. This deduction is available for kindergarten, elementary or secondary school staff who teach at least 900 hours per year.

A second benefit for teachers who itemize deductions is to claim "out-of-pocket items such as class supplies, training and travel." This is a miscellaneous deduction.

The third option is for teachers who are continuing their education. They may qualify for the Lifetime Learning Credit or American Opportunity Tax Credit.

Students may also benefit from the Lifetime Learning Credit or American Opportunity Tax Credit. In addition, they may have a Qualified Student Loan used to pay higher education expenses for themselves or a spouse. If so, they may qualify for a special deduction for paying interest on a student loan. To qualify, their modified adjusted gross income (MAGI) in 2017 must be under $80,000 for a single taxpayer or $165,000 for a joint return.

Work-related education may also qualify for an itemized deduction. Applicable education that is used to improve work skills may be deductible for both employees and the self-employed. Self-employed persons may reduce their self-employment tax and their income tax.

Another excellent benefit for funding education is a Sec. 529 plan. Section 529 plans are administered by each state. They permit contributions of cash up to five annual exclusions ($70,000 total transfer in 2017). The contributions of cash will be invested and grow tax free. You can withdraw tax free any payments of tuition, fees and other qualified expenses. The expenses must be at a postsecondary institution.

Editor's Note: Additional information for teachers and students is available on www.irs.gov. Another helpful website to learn about Sec. 529 plans is www.savingforcollege.com.

Published September 29, 2017
Print
Email
Subsribe to RSS Feed

Previous Articles

Expanded Relief for Hurricane Irma Victims

Tax Relief for Hurricane Irma Victims

Prepare for Hurricane Irma

Tax Reform 'Blueprint' Promised

Ryan and Brady Barnstorm for Tax Reform

scriptsknown

About Bequests

You may be looking for a way to make a significant gift to help further our mission. A bequest is a gift made through your will or trust. It is one of the most popular and flexible ways that you can support our cause.
More »

Donor Stories

Learn how others have made an impact through their acts of giving to our organization and others. Explore the many benefits of charitable gift planning.
More »

Washington News

With America's children back in school this fall, the Service highlighted education benefits for teachers and students in IR-2017-163 and 166.

Teachers have three potential benefits. An educator may deduct "above the line" amounts up to $250 so long as they are unreimbursed business expenses. This deduction is available for kindergarten, elementary or secondary school staff who teach at least 900 hours per year.

A second benefit for teachers who itemize deductions is to claim "out-of-pocket items such as class supplies, training and travel." This is a miscellaneous deduction.

The third option is for teachers who are continuing their education. They may qualify for the Lifetime Learning Credit or American Opportunity Tax Credit.

Students may also benefit from the Lifetime Learning Credit or American Opportunity Tax Credit. In addition, they may have a Qualified Student Loan used to pay higher education expenses for themselves or a spouse. If so, they may qualify for a special deduction for paying interest on a student loan. To qualify, their modified adjusted gross income (MAGI) in 2017 must be under $80,000 for a single taxpayer or $165,000 for a joint return.

Work-related education may also qualify for an itemized deduction. Applicable education that is used to improve work skills may be deductible for both employees and the self-employed. Self-employed persons may reduce their self-employment tax and their income tax.

Another excellent benefit for funding education is a Sec. 529 plan. Section 529 plans are administered by each state. They permit contributions of cash up to five annual exclusions ($70,000 total transfer in 2017). The contributions of cash will be invested and grow tax free. You can withdraw tax free any payments of tuition, fees and other qualified expenses. The expenses must be at a postsecondary institution.

Editor's Note: Additional information for teachers and students is available on www.irs.gov. Another helpful website to learn about Sec. 529 plans is www.savingforcollege.com.
...
More »

Follow us on: