Recent statistics show that Americans currently owe nearly $1.5 trillion in student loan debt. Comparatively, the figure for credit card debt owed is less than $1 trillion. Given this, the consternation felt by many Americans in response to the passage of the Tax Cuts and Jobs Act was understandable. In its early stages, tax reform threatened tax deductions and breaks available to many students. Fortunately, most education deductions survived the bill unscathed. In fact, one of the most significant alterations relating to education involved the expanded use of Section 529 accounts. Beginning this year, the use of 529 accounts will be substantially expanded in that “qualified distributions” will include tuition payments at private, public, and religious schools.
See James Agnew, How New Tax Laws Can Affect Your Education Plans, Market Watch, March 7, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
