Do you have a child about to enter college? Chances are, you’d like to buy them a new laptop, netbook, or desktop PC.
Under the new American Recovery and Reinvestment Act of 2009, taxpayers who buy PCs for their children in 2009 and 2010 can claim those desktops, notebooks, and netbooks as qualified higher education expenses.
Under the new Act, computer-related expenses are defined as any expense incurred for buying any computer technology and equipment, as well as internet access and related services, as long as the equipment and technology is used by the student and the students family during any of the years the student is enrolled at an eligible educational institution.
Those of you who have college-aged kids know that tuition costs have dramatically increased so any opportunity to save is a welcome benefit. This tax break is only in effect through 2010, so those who have children in college or kids ready to start school this September need to start shopping for new PCs now!
Computers as Qualified Education Expenses in 529 Education Plans. Section 529 Education Plans are tax-advantaged savings plans that cover all qualified education expenses, including: tuition, room & board, mandatory fees and books. The bill provides that computers and computer technology qualify as qualified education expenses. This proposal is estimated to cost $6 million over 10 years. Read more…