Today TaxMama answers Terry of Morristown, MN says “I am a future college student with plans to study Industrial Design. I am asking wealthy people that I know for college donations and that type of thing. I was wondering if it was a tax write-off if they donated to a student’s college fund.”
Dear Terry
How very bold of you. Do you know what chutzpah is?
But, it never hurts to ask. So, good luck.
No, there are no tax deductions for giving money directly to college kids.
There are, however tax benefits to be derived from putting money into various college IRAs or savings funds, and letting the earnings grow inside those accounts. That way, these people can give you less money now, and you’ll reap the benefits of the interest, dividends or investment growth without any of that income ever being taxed.
Of course, someone could set up a scholarship fund with specific parameters for Industrial Designers that would make you the most eligible person…but that fund would have to be objective and consider other people with the same qualities, too. And someone else might get selected.
But, it’s a great try – and if you can get people to give you money – hey, more power to you!
And remember, you’ll find answers to lots of education questions and other tax information, free. Where? At TaxMama.com
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