College Costs Are Rising Faster than Gas Prices: Is There Help?

Posted in Tax Highlights May 2008

Keywords: education expenses, education tax benefits, Section 529, tax, tuition

As the price of higher education continues to rise, many parents are looking for tax benefits to help reduce the cost. Some options available for you or your college-age children include:

  1. Deduction for Qualified Tuition and Related Expenses
  2. Using U.S. Savings Bond Interest to Pay Educational Expenses
  3. Hope Credit up to $1,800 Applies to First 2 Years of College
  4. Lifetime Learning Credit up to $2,000 Applies to All Years of Post-Secondary Education
  5. Coverdell Education Savings Accounts
  6. Section 529 Qualified Tuition Programs
  7. Deduction for Student Loan Interest
  8. Your Child is Going to College—Are You Ready?

Because options one through five have restrictive income limitations, many Blackman Kallick clients find the Section 529 plan is the only plan available, unless the student can claim the deduction or credit. Also, several of the above items are exclusive and, therefore, may not be combined with other college credits and deductions.

If you have any questions, please contact Michael Calahan at 312-980-2996 or Tara Wells at 312-980-3277 for more information.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.


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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.