Tax Tips – Is It Tax Deductible? – Private School Tuition

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – Is Private School Tuition Tax Deductible?

Example – Your children attend private elementary schools and private high schools. Is their tuition tax-deductible?

Answer – True or False?

 

The answer is FALSE.

You can’t deduct the cost of elementary or secondary school tuition. But there is one tax break that can help cover those bills. Coverdell Educational Savings Accounts permit taxpayers to contribute to an account from which withdrawals (including earnings) can be used tax free to pay for qualified education expenses including tuition, books, supplies, and uniforms. Up to $2,000 a year can be deposited in a Coverdell for any number of beneficiaries. Contributions are not deductible, but withdrawals can be used for elementary and high school expenses as well as for the cost of higher education. Taxpayers with AGI over $110,000 on a single return or $220,000 on a joint return can’t contribute to a Coverdell.Tuition Costs

 

 

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