Children_and_college_SS10.key

Children_and_college_SS10.key - The Earning Power of...

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What is $298,680? The Cost of Raising a Child (to age 18) Expenditures on Children by Families 2007 The Earning Power of Education • Education Yearly Salary • High School $21,680 • Bachelor’s $40,000 • Master’s $52,000 • Ph.D $79,000 • Professional $93,000 College Funding Methods: • Current income • Parents savings – Section 529 Plans – Education IRA – Coverdell Savings – Custodial Accounts • Uniform Gifts to Minors Act • “Kiddie Tax” – Trusts • Private and Government funds Education tax incentives • Hope Credit - modified! American Opportunity Tax Credit • Lifetime Learning Credit • Tuition and fees deduction • Student Loan interest deduction Now to production…. EE Savings Bonds • Bought by person 24 or older at discount • Tax exempt if – Redeemed for higher ed (income limited $82,100-S) – Taxpayer – Spouse – Dependent savingsbonds.gov Coverdell Education Savings Account (child as beneficiary) • Transferred to student at age 18
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This note was uploaded on 11/11/2011 for the course FCE 238 taught by Professor Boyce during the Fall '07 term at Michigan State University.

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Children_and_college_SS10.key - The Earning Power of...

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