What is the tax treatment of college and university endowments? Q.What is the tax treatment of college and university endowments? A.A small number of colleges and universities in the United States have accumulated significant wealth in the form of endowments. Because these institutions are public and private nonprofit charitable enterprises, donations to their endowments are not taxed and the assets grow free of taxes. In 2017 Congress created an exception to this practice, imposing a tax on the endowment earnings of a small number of private nonprofit colleges and universities. Read more about What is the tax treatment of college and university endowments?
What tax incentives exist to help families save for education expenses? Q.What tax incentives exist to help families save for education expenses? A.Three tax-favored saving instruments encourage families to save for education expenses: Coverdell savings accounts, qualified tuition programs (commonly known as 529 plans), and the education savings bond program. The first two can be used for elementary, secondary, and postsecondary education. In contrast the much smaller education savings bond program is limited to postsecondary education. Read more about What tax incentives exist to help families save for education expenses?
What tax incentives exist for higher education? Q.What tax incentives exist for higher education? A.Federal tax incentives for higher education include tax benefits for saving, tax benefits for tuition and related expenses, and tax benefits for student loans—in other words, benefits before, during, and after college attendance. These incentives mostly target middle-class households who do not benefit from many federal grant programs for students. Read more about What tax incentives exist for higher education?