August 2018

Tax Insights – August 2018                                          Rita Bhayani


Important Tax Dates & Information

Aug. 15, 2018 – Extended exempt organizations returns due

Sept. 17, 2018 – Third-quarter estimated taxes due

Sept. 17, 2018 – Extended partnerships and S corporations returns due

Oct. 15, 2018 – Extended individual tax returns due



Tax Notes

The Tax Cuts and Jobs Act raised the Child Tax Credit from $1,000 to $2,000. Of this, up to $1,400 can be a refundable credit. The Internal Revenue Service has not fully explained how this will work, but I’ll let you know as soon as they issue guidance.



What is a Qualified Education Expense?

As you send your children back to school, you may be wondering what expenses qualify for education credits or tax-free distributions from education accounts. Use the chart below as a guide. If you have any questions, give me a call. Together we can plan how to best pay for your child’s education.


Expense

Coverdell ESA

529 Plan

American Opportunity Credit

Lifetime Learning Credit

Elementary and Secondary Expenses

Tuition

Yes

Up to $10,000

No

No

Fees

Yes

Up to $10,000

No

No

Room and Board

Yes

Up to $10,000

No

No

Uniforms

Yes

Up to $10,000

No

No

Transportation

Yes

Up to $10,000

No

No

Post-Secondary Expenses

Tuition

Yes

Yes

Yes

Yes

Fees

Yes

Yes

Yes

Yes

Books

Yes

Yes

Yes

Yes

Room and Board

If > half-time

If > half-time

No

No

Insurance

No

No

No

No

Medical Expenses

No

No

No

No

Living Expenses

No

No

No

No

Transportation

No

No

No

No



Quote Corner
Wake Up. Be Kind. Be Awesome. Repeat.



Did You Know?
On Aug. 21, 1911, Vincenzo Peruggia stole the Mona Lisa from the Louvre by hiding in a closet overnight. The painting was not recovered until 1913. Peruggia served seven months in jail for the theft.


Comments