Prior to tax year 2022, 529 contributions were not tax-deductible. For 2022 and beyond, the New Jersey College Affordability Act allows 3 kinds of income tax deductions if your gross income is $200,000 or less on your tax return. The NJ Division of Taxation outlines them as follows:
Victoria Cannillo, an Associate Financial Planner/Analyst at Baron Financial Group, is quoted on this topic, answering a reader’s question on NJMoneyHelp.com by Karin Price Mueller, “Will my son’s summer income count for financial aid?”, originally published in June 2024.
Victoria Cannillo, a Financial Analyst at Baron Financial Group, is quoted on this topic, answering a reader’s question on NJMoneyHelp.com by Karin Price Mueller, “How will my daughter’s money count for financial aid?”, originally published on October 3, 2023. Assuming your daughter is going to apply for financial aid...
On November 22, 2022, the U.S. Department of Education announced an extension of the pause on student loan payments until the Department is permitted to implement the debt relief program or the litigation is resolved. According to the U.S. Department of Education:
On April 6th, President Biden announced that the U.S. Department of Education was extending the pause on student loan payments until August 31st. The pause was previously scheduled to expire on May 1st. According to Studentaid.gov, the pause includes the following assistance measures:
Victor Cannillo is quoted on this topic in an article on NJMoneyHelp.com by Karin Price Mueller, originally published on July 30, 2020. A 90-second read by Victor Cannillo: If you are a grandparent who has set up a college-savings plan for your grandchild, you may be concerned as to how it could affect their financial aid eligibility. Here are some things to consider.
A 45-second read by Victor Cannillo: If you want to help a relative pay for college, you can pay the money to the college directly without incurring any gift taxes. However, you need to ask the school if this would affect the need-based aid eligibility of the student because each school handles this differently. For example, if the school views the money as a payment of the student’s account, then most likely it would not affect financial aid. But if the money is treated as a resource, then it will reduce the student’s aid “dollar-for dollar.”