Are there any Tax Deductions for Private school?
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Anonymous
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I am thinking about doing private because I am not happy with the class sizes even in our highly rated McLean area.
Are there any deductions for private tuition? Are there tax deferred accounts similar to college 529? |
Anonymous
| Nope. |
Anonymous
| What about a Cordell Education account? I think contribution limits are $2k/yr. |
Anonymous
| I hope not. |
Anonymous
| haha good one |
Anonymous
Coverdell.. Also, you can deduct tuition paid to Scientology schools. But only Scientology. |
Anonymous
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Link to the Scientology claim: http://www.nytimes.com/2004/03/24/business/scientologists-tax-break-cited-in-suit-against-irs.html
Yeah, the article is 9 years old but nothing has changed. |
Anonymous
Why not? It doesn't seem fair to pay taxes for school and pay for private school. |
Anonymous
| You can deduct your annual giving contributions and your auction donations. But of course that's on top of tuition. For a while schools were trying to frame annual giving as the tax deductible portion of tuition (and suggest that families aim to cover the "gap"), but that concept ran afoul of the IRS. |
Anonymous
Sounds unfair that the IRS would meddle with this. |
Anonymous
Fair? Fair? who said the tax system is supposed to be "fair?" It's all about redistribution. |
Anonymous
People pay taxes for school even if they don't have kids. I pay taxes for LOTS of things I don't benefit from directly (welfare, highways in North Dakota, etc.) but there is a public good element to it. Unless you are a tea partier of course. |
Anonymous
Yeah, it does. Private school isn't a public good. We give tax breaks for things that contribute to the public good. Private schools actually do the opposite. |
Anonymous
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Coverdell Education Savings Account
This account was created as an incentive to help parents and students save for education expenses. Unlike a 529 plan, a Coverdell ESA can be used to pay a student’s eligible k-12 expenses, as well as post-secondary expenses. On the other hand, income limits apply to contributors, and the total contributions for the beneficiary of this account cannot be more than $2,000 in any year, no matter how many accounts have been established. A beneficiary is someone who is under age 18 or is a special needs beneficiary. Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. The beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution. This benefit applies to qualified higher education expenses as well as to qualified elementary and secondary education expenses. Here are some things to remember about distributions from Coverdell accounts: Distributions are tax-free as long as they are used for qualified education expenses, such as tuition and fees, required books, supplies and equipment and qualified expenses for room and board. There is no tax on distributions if they are for enrollment or attendance at an eligible educational institution. This includes any public, private or religious school that provides elementary or secondary education as determined under state law. Virtually all accredited public, nonprofit and proprietary (privately owned profit-making) post-secondary institutions are eligible. Education tax credits can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. If the distribution exceeds qualified education expenses, a portion will be taxable to the beneficiary and will usually be subject to an additional 10% tax. Exceptions to the additional 10% tax include the death or disability of the beneficiary or if the beneficiary receives a qualified scholarship. For more information, see Tax Tip 2008-59, Coverdell Education Savings Accounts. |
Anonymous
| Some state tax deduction options. http://www.pewstates.org/projects/stateline/headlines/tax-dollars-for-private-school-tuition-gain-in-states-85899495243 |