Tax Information
Students and families planning for college, or those currently paying higher education costs, may be eligible for a number of tax benefits. These include education tax credits, deductions for higher education expenses and loan interest, tax-free withdrawals from certain savings plans and participation in college savings plans.
There are a few things not outlined in the following charts that also can affect your taxes. For example, if your student receives monetary amounts from scholarships, fellowships, grants or tuition reductions, the items may not be taxable. Also, two other tax-wise options for the non-traditional student include Employer-Provided Educational Assistance and the Business Deduction for Work-Related Education. This informational guide produced by North Dakota College Access Network (NDCAN) administered by Bank of North Dakota (BND) will give you a brief glimpse into these tax benefit options. It is intended for informational purposes only, not as legal or tax advice. Please consult your personal tax advisor to determine what is best for you and your family, to make the best decision for your situation.
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Taxpayer Relief
Scholarships, fellowships, grants and tuition reductions may not be taxable. Expenses that you incur for higher education offer you several ways to reduce your income taxes. If you plan carefully before you incur these expenses, you will receive the full benefit of the following tax breaks.
Tax-wise Investing
No matter where you and your child are on the journey toward higher education, it is never too late to start saving. Your child’s education could be one of the biggest investments either of you ever make. If you have more than one child, obviously the financial commitment grows. However, families with a desire to save for education have more options than ever before. Below is a list of these option to help you get started in determining what is best for your family. Planning and saving early can put the cost of higher education within your reach.
