Tracking College Expenses

Are you drowning in college receipts, invoices and statements? Are you confused about what you need to keep?

Let's walk through the college expenses you should track in order to take advantage of tax credits and/or tax free withdrawals from a 529plan.

We'll start with tax credits:

There are 2 education credits: The American Opportunity Tax Credit & The Lifetime Learning Credit

Both of these credits are calculated using the qualified education expenses paid during the year you claim the credit.

Qualified education expenses are:     

• Tuition

• Fees

• Books

• Supplies

• & Equipment (such as a computer) that are required for enrollment.

  
  

You will notice we didn’t list Room & Board as a qualified education expense for tax credits.

However, If you're paying for college with a 529 Plan, you can withdraw funds tax-free for room and board, as it's an eligible expense for tax free withdrawals.

If you are uncertain if the expense is qualified, save the receipt and allow your tax professional to determine whether it is eligible.

Retain documentation such as receipts, invoices, and statements to verify expenses for tax credits or education savings plan withdrawals.

Click below to download our Educational Expense Tracker so you will be ready for tax season!

Educational Expense Tracker

We know all of this can be confusing and stressful.

That’s why we’ve made it our mission to help you unravel it all.

From confusion to clarity, Accountabilities has you covered.