IRS Issues Guidance On Discharged Student Loans

February 26, 2020 Shamsey Oloko Leave a comment Internal Revenue Service, Student Loans

In early 2020, the Internal Revenue Service issued Revenue Procedure 2020-11 (Rev. Proc. 2020-11) about the established safe harbor that extends relief to taxpayers who used federal or private student loans to finance attending a nonprofit or for-profit school. The relief described in Rev. Proc. 2020-11 is also extended to any creditor that would otherwise be required by law to file information returns and provide payee statements to discharge any indebtedness within the scope of the revenue procedure.

The Treasury Department and the IRS had extended relief to student loan borrowers in the last five years as follows, and now wishes to extend such relief:

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Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives

March 17, 2017 Shamsey Oloko Leave a comment American Opportunity Tax Credit, Education Tax Credit, Expenses Deductions, Lifetime Learning Credit, Lifetime Learning Tax Credit, Student Loans

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fourth part of our series about the most confusing provisions of the Internal Revenue Code addresses education tax incentives.

Why Is It Confusing?

There are a large list of incentives from which to choose
New stricter requirements to establish eligibility for some incentives
Determining eligibility is a complicated, arduous, lengthy process
Difficulty in determining the correct and appropriate benefit

This is a preview of Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives. Read the full post (499 words, 1 image, estimated 2:0 mins reading time)

The Most Overlooked Tax Deductions, Part 9

October 10, 2016 Shamsey Oloko Leave a comment American Opportunity Tax Credit, Depreciation, Expenses Deductions, Lifetime Learning Tax Credit, Student Loans

This is the ninth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the second half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!

HEALTH, CHILD CARE, AND CHARITY DEDUCTIONS

Deduction of Medicare Premiums for the Self-Employed
Self-employed individuals who continue to operate their own businesses after qualifying for Medicare can deduct their Medicare Part B and Medicare Part D premiums, plus the cost of supplemental Medicare policies or the cost of a Medicare Advantage plan, regardless of whether or not he or she itemizes.

This is a preview of The Most Overlooked Tax Deductions, Part 9. Read the full post (435 words, 1 image, estimated 1:44 mins reading time)

Tax Benefits For Education Part 3

August 8, 2016 Shamsey Oloko Leave a comment Education Tax Credit, Expenses Deductions, Qualified Education Expenses, Qualified Expenses, Student Loans

This is the third part of our multi-part series of blogs on tax benefits for education. Any present or former student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage of all the credits and deductions that the law allows for students of higher education.

Tax credits, deductions and savings plans offer taxpayers ways to reduce their expenses for higher education.

A tax credit may reduce the amount of potential income tax.
A deduction reduces the amount of income that is subject to tax, thus reducing the amount of tax paid.

This is a preview of Tax Benefits For Education Part 3. Read the full post (483 words, 1 image, estimated 1:56 mins reading time)

Tax Benefits For Education Part 2

August 5, 2016 Shamsey Oloko Leave a comment Deductions, Education Tax Credit, Income Tax, Student Loans, Tax Credit, Taxable Income

This is the second part of our multi-part blog on tax benefits for education. Any present or former (or future) student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage all the credits and deductions that the law allows for students of higher education.

Tax credits, deductions and savings plans offer taxpayers ways to reduce their expenses for higher education.

A tax credit may reduce the amount of potential income tax.
A deduction reduces the amount of income that is subject to tax, thus reducing the amount of tax paid.

This is a preview of Tax Benefits For Education Part 2. Read the full post (377 words, 1 image, estimated 1:30 mins reading time)