Notes On Divorce and Tax Changes
This article by Dr. Halem seemed very timely as we hit the Labor Day weekend and all too soon will be staring Halloween and Thanksgiving in the face. I really liked what she said about keeping you informed after your mediation is finished.
Here are a few highlights and a link to the entire article along with reminder that help is available if you get stuck with a question.
The Tax Reform Law Impacts Families
By Dr. Lynne C. Halem from Mediate.com
Dr. Lynne C. Halem is the director at the Centre for Mediation & Dispute Resolution in Wellesley, MA
Helping you stay informed, even after mediation has ended, is a central part of CMDR’S long-term mission.
Child Tax Credit:
For children under 17, single parents earning up to $200,000 can receive a credit of $2,000 per child. This is a major improvement. Prior law limited parental earnings to $75,000 and provided a credit of only $1,000 per child.
529 Education Plans:
The new law allows parents to draw up to $10,000/year from 529 Plan(s) for pre-college private schooling or, say, tutoring. There is still no limitation on the amount of money to be drawn from 529 Plans for qualified college expenses.
Other Education Provisions:
You can still deduct student loan interest of up to $2,500/year. The Lifetime Learning deduction is also still in effect.”