Wednesday, May 27, 2009

Educational Tax Trick/Tip

While scanning through my e-mails the other day, I came across an e-mail from computer and electronics seller Tiger Direct and since I am always interested in new technology to make life run smoother I opened it looking for deals. The e-mail stated that due to the new American Recovery and Reinvestment Act of 2009 taxpayers with a child in college will be able to claim technology products (laptops, netbooks, and internet to name a few) as qualified education expenses for year 2009 and 2010. In an effort to sell more units, Tiger Direct left out one important detail regarding the technology products purchased.

Products purchased by the taxpayer must be bought with funds from a Section 529 educational plan and not out of pocket. The e-mail is only partially correct and many taxpayers will think that their purchases will qualify for educational expenses when in reality they will not. Be sure to speak with your tax advisor to understand the tax advantages of Section 529 plans so that you can properly plan your educational purchases for the year.

Keeping Your Business N Synergy

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