lima branch
711 Dean Ave., Lima, OH 45804
Tel: 419.222.2001
Fax: 419.222.1570
Bluffton Branch
113 N. Main St., OH 45817
Tel: 419.369.9001
Fax: 419.369.1570

Tax Breaks for Education & Student aid Information


This section is provided to assist clients in the various aspects of post-secondary education planning including tax benefits, aid programs, educational savings programs, etc. We encourage you to call for an appointment so that we can help you plan for your children’s education.

Use Appreciated Stock to Fund Obligations
Monday, June 29, 2015

You might want to consider gifting stock that has appreciated in value to your children (over age 23) to help pay for their education or to purchase a home, or to parents to help pay for their healthcare. By doing this, you shift the tax liability for the gain from...

Self-Employed Education Twists
Monday, June 29, 2015

Self-employed taxpayers should consider their options carefully when it comes to applying tax benefits for their own education tuition and expenses. Tax law provides multiple ways to benefit from the educational expenses and one may provide more benefit to you than another based on your particular set of circumstances. In...

Penalty-Free IRA Withdrawals
Monday, June 29, 2015

Generally, when funds are withdrawn from an IRA before a taxpayer reaches age 59-1/2, a 10% early withdrawal penalty applies to the distribution. However, penalty-free withdrawals are permitted if the funds are used to pay qualified higher education expenses. The withdrawals will still be subject to regular income tax. Qualified...

Educational Tax Credits
Monday, June 29, 2015

The law provides for two nonrefundable tax credits, the American Opportunity (or Hope Scholarship credit) and the Lifetime Learning Credits. Both credits will reduce a taxpayer's tax liability dollar for dollar until the tax reaches zero. Any Hope or Lifetime credit in excess of the tax liability is lost. The...

Education Credits - Who Gets the Benefit?
Monday, June 29, 2015

When it comes to who gets the benefit of the education credits, it might not be who you would expect. The IRS has provided clarification as to who can claim the education credits. These are credits allowed for qualifying higher education costs for yourself, your spouse, or your dependents. Under...

Deduction for Higher Education Interest
Monday, June 29, 2015

When this deduction was first created some years back the deduction was limited to interest for the first 60 months after the first payment was due. The 60-month rule was temporarily eliminated through 2012. Without further Congressional action the 60-month limit will return in 2013.

Generally, taxpayers can only deduct...

Education Credits Can Be Claimed On An Amended Return
Saturday, June 27, 2015

The IRS has announced that individuals who could have claimed the education credit but failed to do so on their original returns, may claim the credit on an amended return. In general, an amended return may be filed within three years from the date your return was filed or within...