Blog

Shopping Cart

Your Cart is Empty

Quantity:

Subtotal

Taxes

Shipping

Total

Blog

Blog

« Back to Blog « Older Entry | Newer Entry »

Life Changes and Taxes Part II

Posted on January 27, 2016 at 1:10 PM

Special thanks to freedigitalphotos .net and imagerymajestic for the fantastic Free Photo

Last week we looked at our young teenagers starting out with their first jobs and how using different items on their W4 forms could change their tax returns. This week, our teenagers have gone to college!

What changes for a teenage taxpayer when they graduate high school and head off to college? Do their parents still claim them? Do they finally get to claim themselves? Should they change the tax withholding on their W4? Will they be eligible for credits for going to school? Do they have to pay tax on the scholarship, grant or fellowship they recieved? What about that 529 plan distribution? We will look at each of these questions and highlight the pros and cons, tax wise, that go with each.

When your teenager heads off for college it can be both exciting and terrifying at the same time. All the unknowns can be trying to the parents as well as the student. Taxes, when related to college, don't have to be a terrifying experience.

Senario 1:

Your teenager just started college, they will be working part time to help pay for small expenses and received a scholarship to help cover the cost of tuition. In this case, depending on the students income, most parents will still be able to claim the student on their return. Not much changes from when their child was working throughout high school. If the student works and is required to file a return, they will still mark they are claimed by another. In many cases, they will file to get a refund of tax paid in. Is the scholarship taxable? If the scholarship was used to pay for education expenses such as tuition, fees, books and other supplies then the scholarship is not taxable income. If the scholarship was used for room and board you may have a taxable scholarship event. In many cases the student should still claim "0" on their W4 as to avoid working too much and having a tax liability. If they college expenses were completely covered by a scholarship then there will not be any education credits. Room and Board is not covered in these credits. What if you used the amounts in the 529 plan? This distribution is not taxable if the proceeds were used for education.

Senario 2:

Everything is the same as in 1 except our student didn't receive any scholarships or proceeds from a 529 plan. Then education credits or deductions can be taken. These range from the American Opportunity Credit, the Lifetime Learning Credit as well as the Tuition an Fees Deduction. Who claims the credit or deduction? If the young student is being claimed by their parents then the parent claim these. If they are claiming themselves then they are allowed to claim them on their return.

Senario 3:

Everythings the same as in 1 but the scholarhsips didn't cover all of the expenses. In this case, their may be education credits or deductions available. Subtract the scholarship received from the expenses for tuition, books, fees and supplies to get the out of pocket costs paid for the year.This is the amount to use for the credits or deductions.

What if they used Student loans to pay for the costs. Even if student loans were used, education credits can still be taken as these are considered as paid out of pocket. When the loans are being repaid there may be a deduction for the student loan interest that was paid all year.

We here at Excel Tax and Consulting Services want to be here for you through all of your life changes. Check back next week when our teenagers have become adults!

Excel Tax and Consulting Services

1324 1st. Ave. N.

Denison, IA 51442

712-263-8032

[email protected]

Categories: Federal Taxes, State Taxes, Taxes

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

Name Email

Message

27162 Comments

Reply ERAlgogma

10:05 PM on November 16, 2017

We invite everyone to visit our studio and enjoy nuru massage. Masters will care for you. Beautiful rooms equipped with all necessary essential for complex massage. The power of massage body to body surpasses the traditional means of fighting depression and fatigue. During the session, you completely disconnect from the hustle and bustle of the world with all its troubles. Pleasant body ladies makes you forget about everything and concentrate only on having fun.

We created a wonderful atmosphere in school , to cause you to relax and a sense of detachment from the outside world. After you try one of our massages, you definitely want to come back here again. The most hot and playful girls are waiting for you in spa center.

Salon of erotic massage hot in NYC invites you to enjoy the art of relaxation. Order from us a program of any massage, and you will get not only pleasure but also pleasant emotions.

Visitors to school erotic massage girl can find many questionnaires lady of any age and nationality performing body work massage in the city Manhattan.

Specialists are able not only to give pleasure in this way, but also to the strong semi-gentlemen. Beauties perform body rub a massage that will produce a male a vivid impression.

We have a showroom in New Jersey. : erotic massage blow job

Reply Traceer

7:41 AM on November 18, 2017

Продвижение сайтов.
Комплексное интернет-продвижение сайтов без посредников и переплат в одном месте!
Сбор различных баз для продвижения в интернете
Эффективно и недорого. Писать в ICQ 656310373

Reply Michaelhew

9:37 PM on July 1, 2018

460-1300
400
160
155
NEW! : 70190 / + 1. + / 1. + 6060.
1500 !!!

ICQ 726166382

Reply Roseanne

4:53 AM on July 25, 2018

7red live casino
online slots try your luck
free bets nsw
online roulette singapore
gambling addiction gold coast

Reply Sabina

5:50 PM on July 25, 2018

casino games real money
play casino games online
best online casino
kasino
slot game

Reply TVPNuame

1:25 AM on July 30, 2018

. , , .
, .

.

, .
, , , .

, , , .

-

Reply sharBom

5:27 PM on April 21, 2019

Want to safely Share songs from any mobile device to your pc? Check out SHAREit Share&Transfer App! It works on Laptops and Android phones, very easy in use and lighweight. Download SHAREit for PC from here: https://download-shareit.com and share files between your friends, family or strangers!

Reply Kelsmance

9:42 PM on May 4, 2019

In House Pharmacy Australia Canadian Health Viagra Cialis Espagne viagra Cialis Ischemia Viagra Acquisto Senza Ricetta Keflex And Pediatric Dosage

Reply Kelsmance

7:29 PM on July 29, 2019

Levitra Costo Farmacia Kamagra Gel Oral Kamagra Australia Sydney cialis Priligy Generico Portugal Lioresal Acheter En Canada Order Xenical Orlistat Cheap

Reply Kelsmance

2:28 PM on August 6, 2019

Male Ed Pharmacy Cialis Levitra Prezzo Cialis Generique En 24h viagra Side Effects Of Amoxicillin In Infant Viagra Original Tabletten

Reply BarbaraLaw

12:56 AM on November 15, 2019

Reply idiriruzi

10:27 AM on March 8, 2020

Always zep.tcda.eatsmokeyjsbbq.com.atm.nb inactive crater, [URL=http://techonepost.com/persantine/ - persantine generic[/URL - [URL=http://mccarthyhs.com/tugain-gel/ - tugain gel[/URL - [URL=http://elegantearthatthearbor.com/cialis-canada/ - cialis[/URL - generic cialis tadalafil uk [URL=http://leemyles-boulder.com/propecia/ - finasteride o finasteride[/URL - [URL=http://littlebackpackbigworld.com/product/lasipen/ - lasipen brand[/URL - [URL=http://tattoosideasblog.com/product/can-viagra-be-combined-w
ith-cialis/ - can viagra be combined with cialis[/URL - [URL=http://bayridersgroup.com/buy-bactrim/ - bactrim for sale[/URL - [URL=http://sweepscon.com/levitra-generic/ - levitra generic[/URL - trial persantine without dr prescription tugain gel commercial cialis aus indien subaction showcomments propecia archive older lasipen can viagra be combined with cialis bactrim for sale levitra years: http://techonepost.com/persantine/ persantine http://mccarthyhs.com/tugain-gel/ tugain gel commercial http://elegantearthatthearbor.com/cialis-canada/ cialis canada cialis http://leemyles-boulder.com/propecia/ propecia http://littlebackpackbigworld.com/product/lasipen/ lasipen brand http://tattoosideasblog.com/product/can-viagra-be-combined-with-c
ialis/ reviews on cialis http://bayridersgroup.com/buy-bactrim/ bactrim buy bactrim http://sweepscon.com/levitra-generic/ best price levitra 20 mg literature expectancy dementia?

Reply ukameucix

3:20 AM on March 14, 2020

Serious voo.abvj.communitylegalreps.org.uce.lr barefoot totally misapplication [URL=http://sci-ed.org/drug/novosil/ - lowest price on generic novosil[/URL - [URL=http://meilanimacdonald.com/drug/mitomycin/ - mitomycin without dr prescription[/URL - [URL=http://biblebaptistny.org/item/zocon/ - zocon brand[/URL - [URL=http://mannycartoon.com/drug/voveran-emulgel/ - voveran emulgel[/URL - [URL=http://iowansforsafeaccess.org/buy-cialis/ - lowest cialis prices[/URL - [URL=http://bestpriceonlineusa.com/generic-cialis-lowest-price/ - generic cialis lowest price[/URL - [URL=http://sweepscon.com/item/artane/ - generic artane in canada[/URL - carcinoma; lowest price on generic novosil mitomycin zocon without a prescription voveran emulgel cialis generic 20 mg regalis cialis artane trolley danger http://sci-ed.org/drug/novosil/ cost of novosil tablets http://meilanimacdonald.com/drug/mitomycin/ mitomycin capsules for sale http://biblebaptistny.org/item/zocon/ zocon uk http://mannycartoon.com/drug/voveran-emulgel/ buy voveran emulgel w not prescription http://iowansforsafeaccess.org/buy-cialis/ tadalafil generic cialis 20 mg http://bestpriceonlineusa.com/generic-cialis-lowest-price/ cialis in uk online http://sweepscon.com/item/artane/ artane junctional settings.

Reply CharlesMeamy

4:08 AM on March 22, 2020

https://bit.ly/397fgcp
Ð¡â??Ð Ñ?Ð Â»Ð¡â?°Ð Ñ?Ð Ð?Ð Ñ?Ð Ñ?Ð ÂµÐ¡Ð? Ð²Ð?â?? Ð¡Ð?Ð¡â??Ð Ñ? Ð Ñ?Ð¡Ð?Ð Ñ?Ð¡â??Ð ÂµÐ¡Ð?Ð¡Ð?Ð Ñ?Ð Ñ?Ð Ð?Ð Â°Ð Â»Ð¡Ð?Ð Ð?Ð¡â?¹Ð â
?? Ð Ñ?Ð Â·Ð Ñ?Ð ÂµÐ¡Ð?Ð Ñ?Ð¡â??Ð ÂµÐ Â»Ð¡Ð? Ð¡â??Ð Ñ?Ð Â»Ð¡â?°Ð Ñ?Ð Ð?Ð¡â?¹ Ð Ñ?Ð Ñ?Ð Ñ?Ð¡Ð?Ð¡â?¹Ð¡â??Ð Ñ?Ð¡Ð?, Ð Ñ?Ð Â·Ð Ñ?Ð Ñ?Ð¡â??Ð Ñ?Ð Ð?Ð Â»Ð ÂµÐ Ð?Ð Ð?Ð¡â?¹Ð â?? Ð Ñ?Ð Ò?Ð Ð?Ð Ñ?Ð Ñ?Ð Ñ?Ð ÂµÐ Ð?Ð Ð?Ð¡â?¹Ð Ñ? Ð Ð?Ð ÂµÐ Ñ?Ð ÂµÐ¡â? Ð Ñ?Ð Ñ?Ð Ñ? Ð Â±Ð¡Ð?Ð ÂµÐ Ð?Ð Ò?Ð Ñ?Ð Ñ?. Ð Ñ?Ð Ð? Ð Ñ?Ð Ñ?Ð Â¶Ð ÂµÐ¡â?? Ð Ð?Ð Âµ Ð¡â??Ð Ñ?Ð Â»Ð¡Ð?Ð Ñ?Ð Ñ? Ð Ñ?Ð¡Ð?Ð Ñ?Ð Ð?Ð ÂµÐ¡Ð?Ð Ñ?Ð¡â??Ð¡Ð? Ð Ñ?Ð Ñ?Ð Ð?Ð ÂµÐ¡Ð?Ð¡â?¦Ð Ð?Ð Ñ?Ð¡Ð?Ð¡â??Ð¡Ð? Ð Ñ?Ð Â°Ð Ñ?Ð Ð?Ð Ñ?Ð¡â??Ð Ð?Ð¡â?¹Ð¡â?¦ Ð¡â?¡Ð ÂµÐ¡Ð?Ð Ð?Ð¡â?¹Ð¡â?¦ Ð Ñ?Ð ÂµÐ¡â??Ð Â°Ð Â»Ð Â»Ð Ñ?Ð Ð?, Ð Ð?Ð Ñ? Ð Ñ? Ð¡Ð?Ð Â°Ð Â±Ð Ñ?Ð¡â??Ð Â°Ð¡â??Ð¡Ð? Ð¡Ð? Ð¡â? Ð Ð?Ð ÂµÐ¡â??Ð Ð?Ð¡â?¹Ð Ñ?Ð Ñ? Ð¡Ð?Ð Â°Ð Â·Ð Ð?Ð Ñ?Ð Ð?Ð Ñ?Ð Ò?Ð Ð?Ð Ñ?Ð¡Ð?Ð¡â??Ð¡Ð?Ð Ñ?Ð Ñ?.

https://money.yandex.ru/payments/external?requestid=9da9b2dc-95af
-4409-b7e8-addeaca62ae9 - Ð»Ð¾Ñ?Ð°Ð´Ð¸Ð½Ñ?Ð¹ Ð³ÐµÐ»Ñ? Ð´Ð»Ñ? Ñ?Ñ?Ñ?Ñ?Ð°Ð²Ð¾Ð² Ñ?ÐµÐ½Ð° - Ð?Ð°Ð¹Ð¼Ð°Ðº http://xn--80aai0ag2c.xn----8sbbejfc5dkqt4e6bf.xn--p1ai/products/
Baellerry-Business-brown#comment_34 - Ð»Ñ?Ñ?Ñ?Ð¸Ðµ Ñ?Ð»Ñ?Ñ?Ð¾Ð²Ñ?Ðµ Ð°Ð¿Ð¿Ð°Ñ?Ð°Ñ?Ñ? ÐºÑ?Ð¿Ð¸Ñ?Ñ? - Ð?Ñ?Ð°Ð¹Ð²Ð¾Ñ?Ð¾Ð½ http://gb.edusite.ru/f20340/index.php?&mots_search=&lang=&skin=&t
est=&seeMess=1&seeNotes=1&seeAdd=0&code_erreur=28GldNzCWi - Ð²Ð½Ñ?Ñ?Ñ?Ð¸Ñ?Ñ?Ð½Ñ?Ðµ Ñ?Ð»Ñ?Ñ?Ð¾Ð²Ñ?Ðµ Ð°Ð¿Ð¿Ð°Ñ?Ð°Ñ?Ñ? - Ð?Ð¾Ð±Ñ?Ñ?Ð½ÐºÐ° 489466e

Reply BrianEncom

1:44 PM on April 4, 2020

http://kwartyrky.biz.ua

Reply BennyEmoni

5:18 AM on April 29, 2020

Reply GLArptBckVsmSju

5:58 PM on May 2, 2020

YwftMReLDzpAHvSO

Reply Rodneytup

5:34 AM on May 6, 2020

Reply PriliaCreerty

4:32 AM on May 8, 2020

Generic immediate-release and Acticlate: doxycycline price usa Most patients desire to recover faster and increase the dosage to the allowed maximum. However such an approach may lead to increased risks of side effects as well as to overdosing. where can i buy doxycycline no prescription - doxycycline cost

Reply GooloPild

4:28 PM on May 9, 2020

Ð Ñ?Ð Â°Ð Ñ? Ð¡â?¦Ð Ñ?Ð¡Ð?Ð Ñ?Ð¡â?¬Ð Ñ? Ð Ñ?Ð¡â??Ð Ò?Ð Ñ?Ð¡â?¦Ð Ð?Ð¡Ñ?Ð Â»Ð Â°, Ð Ð?Ð Ñ?Ð¡â?? Ð¡â??Ð Ñ?Ð Â»Ð¡Ð?Ð Ñ?Ð Ñ? Ð ÂµÐ¡Ð?Ð¡â??Ð¡Ð? Ð¡â?¦Ð Ñ?Ð¡â?¡Ð ÂµÐ¡â??Ð¡Ð?Ð¡Ð?. Ð Â±Ð Â°Ð Ð?Ð Ñ?Ð Ñ? Ð¡Ð? Ð Ð?Ð Ñ?Ð Â·Ð Ñ?Ð Ñ?Ð Ñ? Ð Ñ?Ð¡Ð?Ð Ñ?Ð¡â? Ð ÂµÐ Ð?Ð¡â??Ð Ñ?Ð Ñ? Ð Ñ?Ð Ñ? Ð Ñ?Ð¡Ð?Ð ÂµÐ Ò?Ð Ñ?Ð¡â??Ð¡Ñ?, Ð Ñ?Ð Ò?Ð Âµ Ð Â»Ð ÂµÐ Ñ?Ð¡â?¡Ð Âµ Ð Ð?Ð¡Ð?Ð ÂµÐ Ñ?Ð Ñ? Ð Ñ?Ð Ñ?Ð Â»Ð¡Ñ?Ð¡â?¡Ð Ñ?Ð¡â??Ð¡Ð? Ð Ñ?Ð¡Ð?Ð ÂµÐ Ò?Ð Ñ?Ð¡â??. Ð²Ð?â?? Ð Ñ?Ð ÂµÐ Ñ?Ð ÂµÐ¡Ð?Ð¡Ð? Ð¡â??Ð¡â?¹ Ð Ñ?Ð¡Ð?Ð¡â??Ð Â°Ð Ð?Ð Ñ?Ð¡â?¬Ð¡Ð? Ð ÂµÐ Ñ?Ð Ñ?? Ð¡â??Ð¡Ñ?Ð¡Ð?Ð ÂµÐ¡â? Ð Ñ?Ð Ñ?Ð Âµ Ð Â±Ð Â°Ð Ð?Ð Ñ?Ð Ñ? Ð Ð? Ð Ñ?Ð Ñ?Ð¡Ð?Ð Ñ?Ð Ð?Ð Âµ, Ð Ñ?Ð Ñ?Ð Â¶Ð Âµ Ð Ñ?Ð Ñ?Ð Ñ?Ð¡Ñ? Ð Ñ?Ð Ñ?Ð Ð?Ð¡Ð?Ð¡â??Ð¡Ð?, Ð Ð?Ð Ñ?, Ð Ñ?Ð¡Ð?Ð ÂµÐ Â¶Ð Ò?Ð Âµ Ð¡â?¡Ð ÂµÐ Ñ? Ð¡Ð?Ð¡â??Ð¡Ð?Ð ÂµÐ Â»Ð¡Ð?Ð¡â??Ð¡Ð?, Ð Ð?Ð Â°Ð Ò?Ð Ñ? Ð Â±Ð¡â?¹Ð Â»Ð Ñ? Ð¡Ð?Ð Ð?Ð¡Ð?Ð Â·Ð Â°Ð¡â??Ð¡Ð?Ð¡Ð?Ð¡Ð? Ð¡Ð? Ð Ñ?Ð Ñ?Ð Ñ?Ð Â°Ð Ð?Ð Ò?Ð Ñ?Ð¡Ð?Ð Ñ?Ð Ñ?, Ð¡â??Ð Ñ? Ð ÂµÐ¡Ð?Ð¡â??Ð¡Ð? Ð¡Ð?Ð Ñ? Ð Ñ?Ð Ð?Ð Ñ?Ð â??, Ð Ñ? Ð Ñ?Ð Ñ?Ð Â»Ð¡Ñ?Ð¡â?¡Ð Ñ?Ð¡â??Ð¡Ð? Ð¡Ð?Ð Â°Ð Â·Ð¡Ð?Ð ÂµÐ¡â?¬Ð ÂµÐ Ð?Ð Ñ?Ð Âµ Ð Ð?Ð Â° Ð Ñ?Ð¡â??Ð Ñ?Ð¡Ð?Ð¡â?¹Ð¡â??Ð Ñ?Ð Âµ Ð Ñ?Ð Ñ?Ð Ð?Ð¡Ð?. Ð Ñ?Ð¡Ð?Ð ÂµÐ Ò?Ð Ñ?Ð¡â??Ð Ð?Ð¡â?¹Ð Âµ Ð Ñ?Ð Â°Ð¡Ð?Ð¡â??Ð¡â?¹ Ð¡â??Ð Ð?Ð ÂµÐ¡Ð?Ð¡Ð?, Ð Ñ?Ð¡Ð?Ð Ñ?Ð Â°Ð Ð?Ð Ñ?Ð Â·Ð Â°Ð¡â? Ð Ñ?Ð Ñ? Ð Ñ?Ð Ñ?Ð Ñ?Ð Ñ?Ð Ñ?Ð Â°Ð¡Ð?Ð¡â?°Ð Ñ?Ð Âµ Ð Ð?Ð Â·Ð¡Ð?Ð¡â??Ð¡Ð? Ð Ñ?Ð¡Ð?Ð ÂµÐ Ò?Ð Ñ?Ð¡â?? Ð Ð? Ð Â±Ð Â°Ð Ð?Ð Ñ?Ð Âµ. Ð â?ºÐ¡Ð?Ð Ò?Ð Ñ? Ð ÂµÐ Ò?Ð¡Ð?Ð¡â??.

12 3...1359 Next »

Blog

Life Changes and Taxes Part II

Post a Comment

Oops!

Oops!

27162 Comments

Categories