The tax strategy discussed in this month's Journal of Accountancy article can maximize the net tax benefit from higher education credits. The articles dives into the types of qualified scholarships and grants that can be used in this strategy which are:
1. The scholarship or fellowship grant must qualify as tax-free under Sec. 117(b)(1)
2. The terms of the scholarship or grant must allow it to be applied to nonqualified expenses.
In addition, they discuss qualified tutition and related expenses, nonqualified education expenses, and four examples that you can follow along with.
Click here to read the full article: https://www.journalofaccountancy.com/issues/2019/mar/education-tax-credits.html
Contact The Green Group today at 732-534-6100 to see if you can apply this strategy to your tax return!