2017 Tax Cuts and Jobs Act FAQ for MUIH Students
During the recent congressional debates about tax reform, there were a number of proposals discussed related to higher education. While there was much discussion around these proposals, none of the proposed changes impacting students’ tuition were adopted.
Please take a moment to review the following FAQ’s. Although the law is complex, we would like to clarify and reassure our students of the facts associated with the law as applicable to being a student at MUIH.
Can I still deduct student loan interest on my taxes?
Yes. The student loan interest deduction remains the same. Students are still allowed to claim a deduction of up to $2,500 for the interest paid on student loans each year. (Wiener-Bronner, 2017)
What is a Tuition Waiver for Graduate students?
Tuition waivers are discounts on tuition for graduate students who work for the University. These waivers are generally available for research and teaching assistantships. (Mulhere, 2017)
Is the Tuition Waiver still in place for Graduate students?
Yes. Graduate students are not required to pay income tax on tuition waivers. (Wiener-Bronner, 2017)
What is a 529 college savings plan?
A plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild. (Service, 2018)
Are distributions from a 529 college savings plan exempt from federal taxes?
Yes. The designated beneficiary generally doesn't have to include in income any earnings distributed from a QTP (529 plan) if the total distribution is less than or equal to adjusted qualified education expenses. (Treasury, 2018)
Mulhere, K. (2017, December 15). Time.com/money. Retrieved from Time.com: http://time.com/money/5067240/gop-tax-plan-colleges-students-loans/
Service, D. o. (2018, January 10). 529 Plans: Questions and Answers. Retrieved from IRS.gov: https://www.irs.gov/newsroom/529-plans-questions-and-answers
Treasury, D. o. (2018, January 10). Publication 970. Retrieved from IRS.gov: https://www.irs.gov/pub/irs-pdf/p970.pdf
Wiener-Bronner, D. (2017, December 25). Your tax questions, answered. Retrieved from cnn.com: http://money.cnn.com/2017/12/21/pf/taxes/new-tax-law-questions-answered/...