Education Feed

These carolers, dressed in Dickensian attire, are no doubt singing traditional Christmas tunes, not my reworked and tax-themed "O Tannenbaum." (Photo by Chris Waits via Flickr CC) O Tax Year-End (O Tax Year Moves) O Tax Year-End, O Tax Year-End, How are thy days so nearing! O Tax Year Moves, O Tax Year Moves, How are thy days so wearing! Not only in the wintertime, But even in young spring is thy prime. O Tax Year-End, O Tax Year Moves, How are thy days so nearing! Yes, that's my attempt at tax lyrics to the tune "O Tannenbaum," known here... Read more →


Welcome to Part 4 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at changes to tax credit, deduction and income exclusion amounts. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021. For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. The hubby has a chant he breaks into every year when I start working on our annual tax return: "Deduct! Deduct! Deduct!"... Read more →


November is the place for perfectly roasted Thanksgiving bird, not the many tax turkeys that can gobble up your money. These monthly tax moves are a great garnish as you finalize your 2019 tax year menu. Turkey attack from South Park via GIPHY It's November. You know what that means. Year-end tax move time. Oh yeah, and holiday plans. I hear ya. It's that crazy hectic part of the year, whether you're the host/hostess with the most/mostest or planning to travel to your Thanksgiving festivities. But you also need to add taxes to the mix. Now. Before you get all... Read more →


It's open season at workplaces across the United States this month. Nope, I'm not talking about team building hunting trips. I'm talking about hunting for the best employer-provided benefits for you and your family. Last year, the big new benefit that bosses were offering was a tax-favored ways to pay off student loan debt. That's still a big draw, with more companies eyeing this option to attract and keep workers, especially younger ones with huge college debt loads. But we're always looking for the new and shiny. This year, emergency funds are attracting employer and employee attention. The reason for... Read more →


Classes are back in session in many communities across the United States. And part of the supplies that are being used to help educate our youngsters were paid for by their teachers. Every year, studies by both private groups and federal agencies report that most public school teacher pay for products they need to get their lessons across to the students. The amounts vary, ranging from nearly $500 in a U.S. Department of Education survey from several years ago to nearly twice that (or more) in some of today's classroom situations. Easy to claim: The good news for these dedicated... Read more →


August is here, but few of us have put out the welcome mat. The eighth month of the year tends to be one of the hottest of the year. Most of the summer's fun events have come and gone. And school is about to start. OK, that last point is a positive for many parents who are running out of patience with the kids being underfoot all the time. Those moms, dads and all other shoppers in 13 states at least will get some state sales tax holidays to make this muggy month a bit more tolerable. Those tax-free events... Read more →


This cool balloon was part of my neighbors' celebration back in 2017 of their son's graduation. Some Texas gusts, however, helped it take a post-graduation trip to our driveway. After snapping this photo (and Instagram video), I helped the light-headed graduate home. Attention class, here's you latest assignment. Wait. Didn't the school year just finish? Yes, for younger students. But those looking for financial help as they head off to college need to do some homework now. Students, or their parents, who are seeking financial assistance to meet higher education costs need to file a Free Application for Federal Student... Read more →


When it comes to expired tax laws, Congress is in much the same situation as the builders of this unfinished bridge. The basics are there, but there's still work to be done. (Photo by Paul Mannix via Flickr CC) UPDATE, June 21, 2019: After almost more than 11 hours of discussion, the House Ways and Means Committee on Thursday, June 20, passed along a 25-to-17 party-line vote a measure to extend through 2020 a variety of tax breaks that expired in 2017 and 2018 or will expire at the end of this year, some of which are highlighted in this... Read more →


Gold Star families aren't the only ones facing unexpectedly higher taxes under kiddie tax changes in the Tax Cuts and Jobs Act (TCJA). Some students who receive college scholarships or grants now face bigger tax bills, too, under the tax reform law that took full effect in 2018. Previously, scholarships or grants for nontuition expenses like room and board were taxed at the same marginal rate that the students' parents paid. That meant lower- and middle-income students generally paid lower tax rates on the educational financial assistance. But the TCJA now applies the higher trust and estates tax rate, which... Read more →


Thanks to much larger standard deduction amounts under the Tax Cuts and Jobs Act (TCJA), fewer filers are itemizing deductions. But that doesn't mean they aren't still writing off some tax-deductible expenses. During this first filing season after the many changes wrought by the latest tax reform law, taxpayers are still claiming what used to be called above-the-line deductions. Technically, they are and always have been adjustments to income. They got the above-the-line moniker because they previously appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your... Read more →


College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →


Change is the only constant, as the old saying goes, and that's as true on the last day of the year as it is on the first. Those changes also could mean changes to your taxes, as some life-altering situations on Dec. 31 affect your taxes for the preceding 364 days. Take, for example, tying the knot. If you get married today, congratulations. Have a spectacular combined wedding reception and New Year's Eve party. Also get ready after the confetti and toasts to deal with some filing changes to your 2018 taxes. Your new Dec. 31 husband or wife status... Read more →


Contributing to a 529 plan is one tax move you need to work into your hectic year-end holiday schedule since most states require you do so by Dec. 31 in order to claim associated state tax benefits on your next tax return. We're almost halfway through December. Are you feeling the holiday crunch? Sorry, but I'm here to add to it. As I've already nagged suggested back in November and earlier this month, you need to take care of some year-end tax tasks, too. One of those tax moves — contributing to a youngster's 529 plan — is worth another... Read more →


Truman the cat guarding presents under the Christmas tree. (Photo by Shawn Kinkade via Flickr CC) Ho, Ho, Ho, Happy Holidays! December is here. Time to decorate and, most importantly, get cracking on those gift lists. If you're not into frantic, crowd-fighting, last-minute shopping trips, here are five easy tax-related gifts for just about everyone on your nice list, including yourself. 1. Give to your favorite charities. You're probably already well aware of this option, since nonprofits have been sending out year-end donation solicitations since Halloween. Their urgency can be forgiven a bit more this year because of the tax... Read more →


October's here! In addition to making some general fourth quarter tax moves, this month is when many employees get to reassess and choose coming-year workplace benefits, many of which also offer tax advantages. And tax-free help paying off student debt could soon be part of those packages. Millennials have overtaken Baby Boomers as the largest generation in the U.S. labor force. That's why today's employers are trying to figure out exactly what these younger workers want. The traditional worker wishes still apply. All employees want decent pay, regular raises and promotion possibilities. But today's twenty- and mid-thirty-somethings want more, and... Read more →


Do you have thoughts about the Internal Revenue Service's plan to stymie state efforts to work around the new $10,000 federal deduction limit on state and local taxes? You are not alone. On Aug. 23, the IRS issued a proposed rule designed to rein in state efforts to give their residents a way to get a tax write-off for all of their state and local taxes, commonly referred to in the tax world as SALT. In that same announcement, the IRS also said it will hold a Nov. 5 public hearing on its proposal regulation and, leading up to that... Read more →


This time of year, my social media streams are full of photos of my friends' children as they head back to class. And it's not just the youngest students being celebrated. Yes, I'm old enough to have peers with kids in college. While all these students' parents are proud of their progeny's new educational milestone, there's also a bittersweet tinge to all those Facebook postings of surprisingly grown up kids. And, of course, there's the realization that this next phase of their youngsters' lives is going to cost them. In some cases, the costs will be a whoooooole lot. Ever... Read more →


Trees in September will see their first fall color. (Photo by Jonathan Bloy courtesy Bloy.net) Hello, September. It's nice to have you back. You are a month that offers mostly-welcome transitions. There are beginnings, as students start a new school year. Parents nationwide say "thank you!" There are endings, as summer gives way to fall's cooler temps and foliage changes. Those of us tired of heat waves want to know what took you so long!?! There are expectations, as the end of the year and its many holidays approach. It's never too early to start planning for these. My Christmas... Read more →


One, in addition to being the loneliest number, also soon could cost some Chinese taxpayers when it comes to their family size. Three years ago, China abandoned its policy, which had been in place since 1979, of fining people for having more than one child. Now Chinese leaders want to encourage people to have more kids. The reason for wanting more babies is that China's previously restrictive family planning policy has produced a growing aging society and a shrinking young population. That's not healthy for any economy. To remedy that situation, China is exploring a variety of proposals, including a... Read more →


School's starting, meaning parents and students need to study up on how the new tax laws do and don't affect the many tax-favored ways to pay for classes. We're all still learning about the Tax Cuts and Jobs Act (TCJA) that was passed late last year and took effect, for the most part, at the beginning of 2018. One area where we all need some tax lessons, especially with the start of the first school year under the new tax law's provisions, is how it affects educational tax breaks. It does make some key changes to some of the tax... Read more →