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1800 Chapel Avenue W. Suite 128,
Cherry Hill, Nj 08002
Phone: (856) 665-2121
Email: ron@taxesq.com



Tax Attorney &
Estate Planning Lawyer


Four years of college eduction will exceed $200,000 at a private University, and more than $100,000 for State school. Combine this with the reality that many students take more than 4 years to finish, and the cost will be a huge burden affecting your lifestyle and potential for retirement. The Federal Government has a few college tax incentive passed in recent years.

Here are Tax Incentives
to Help You Save for College:

Coverdell Education Savings Accounts (Education IRAs). In 2002, the $500 annual limit was increased to $2000. Several changes have made the accounts more attractive. For example: 

  • The annual contribution is available for most people. The income cap is $190,000 for a married couple filing jointly.
  • The Coverdall Plans can be used simultaneously with the Hope and Lifetime Tax Credits.
  • The money can be used for K-12 as well as post-secondary education.

2. College tuition deduction.  "Qualified" higher education expenses of up to $2,000 or $4,000 (depending on your income) paid for you, your spouse, or a dependent may be deductible. Taxpayers can claim it even if they do not itemize deductions.

In addition to these tax breaks, you may also want to take advantage of Section 529 plans. These plans are set up by states. Even though you do not get a tax deduction for contributions to these plans, the earnings grow tax-free until the funds are withdrawn to pay for qualified education expenses.

Give Ronald J. Cappuccio, J.D., LL.M. (Tax) a call at (856) 665-2121> to talk about the best way to save for college.

Continuing Education Deductions.