What comes to mind when you think of a college or a university? Well, there are students, classes, professors, and of course, loans. As anyone with student debt can attest to, it has to be paid back with interest. This is a reality that hits many college graduates hard when they step into the real [...]
(For my post on the American opportunity credit see here.) This post will go into the details of another educational tax credit that can significantly lower your total tax bill – the lifetime learning credit. As stated in the previous post about the American opportunity credit, the general way federal education credits work centers on [...]
(For my post on the lifetime learning credit see here.) The American opportunity credit is one of the federal tax credits offered for educational expenses. It bears a reminder that tax credits diminish the total tax you pay on a one-to-one basis, so, for example, a $500 tax credit is literally $500 extra dollars in [...]
Are scholarships and grants subject to the federal income tax? The answer is sometimes. The non-taxability of a scholarship really depends on four factors: 1) whether the recipient of a scholarship or grant is enrolled in a degree program at an eligible educational institution; 2) the scholarship or grant doesn’t represent payment for work performed; [...]
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