Sentences with phrase «on qualified educational expenses»

As long as you use the money from the 529 on qualified educational expenses (you know, like, college tuitions), all of your gains are completely tax free.

As long as you use the money from the 529 plan on qualified educational expenses, Uncle Sam will not take a dime.

The money in a 529 college savings plan, however, must be spent on qualified educational expenses, lest you incur income taxes and a 10 % fee on your earnings.

As long as you use the money from the 529 on qualified educational expenses, there will be absolutely no tax on your gains.

As long as you use the money from the 529 on qualified educational expenses, there will be absolutely no tax on your gains.

The interest paid on the student loan is deductible if you meet income qualifications and the money is spent on qualified educational expenses.

Not exact matches

If you have had the account for 5 years, and are under 59 1/2, you can withdraw the earnings for qualified educational expenses without the penalty but you will still have to pay taxes on them.

Parents must sign an agreement that says they will use at least a portion of the ESA funds to provide an education in, at a minimum, English language arts, mathematics, social studies and science, use the scholarship funds only for qualifying educational expenses, and not use funds to purchase nonallowable computer hardware, other technology or consumable educational supplies or on tuition at a higher education institution or a noneligible nonpublic school.

The Education Corps is designed to provide tutoring and after - school support but not necessarily to train future teachers.92 The VISTA program matches corps members with a nonprofit organization to perform capacity building and provides yearlong stipends, but it is not intended for provision of direct services.93 The Professional Corps, which specifies teaching as one of its qualified positions, allows participants to access Segal AmeriCorps Education Awards — which recipients can use either for loan forgiveness or for paying tuition and other qualifying educational expenses — but increases residency program costs because residents are prohibited from receiving stipends through AmeriCorps and must therefore be paid through their program or the school district.94 None of these programs were designed for supported entry specifically; thus, programs dedicated to providing a gradual on - ramp to the teaching profession can sometimes find it hard to meet their definitions and requirements.

Also, in limited circumstances, even qualified withdrawals may be taxed depending on the expense the funds were used for, as well as if any other «tax - free educational benefits» (Coverdell ESAs, Hope / Lifetime Learning Scholarships, etc.) were used.

Distributions for nonqualified expenses or to schools that are not qualified educational institutions, may be subject to a 10 % early distribution penalty on any earnings.

If you fail to use the funds in a 529 plan for qualified educational expenses, you will incur a 10 % excise tax penalty AND associated income tax on gains.

Contributions to a Coverdell Account are not deductible, but amounts deposited in the account grow tax - free until distributed, and there is no tax on distributions if they are for enrollment or attendance at an eligible educational institution or qualified education expenses, such as tuition and fees, required books, supplies and equipment and qualified expenses for room and board.

• Have a high impact on financial aid eligibility • Only allow funds to be used for qualified educational expenses • Limit contributions depending on the state

2) Qualified higher education expenses The term «qualified higher education expenses» means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution, reduced by the Qualified higher education expenses The term «qualified higher education expenses» means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution, reduced by the qualified higher education expenses» means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 1087ll, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution, reduced by the sum of --

ESA contributions are not tax - deductible, but they may earn interest tax - deferred until distributed, and the child will not owe tax on any distribution from the account if it is equal to or less than the child's qualified education expenses at an eligible educational institution for the year.

ESAs also can be spent on private school tuition or other qualified educational expenses.

The deduction can be up to $ 4,000 (depending on income and expense amounts) and is based on qualified education expenses paid to an eligible post secondary educational institution.