Paying for college
I think I need an accountant or tax guy but wanted to post this on the forum in case anyone else has already addressed this issue. We have tried to plan for college by buying US savings bonds, Florida Prepaid tuition, and pushing our son to get the 100% bright futures. I am confused after reading some tax laws. According to the American Opportunity Tax Credit (Mr. Obama's replacement for the Hope Credit), you cannot use room and board expenses as a qualified expense to receive the credit (up to $2500). The US savings bonds web site has similar language that bonds are not tax exempt if used to pay for room and board. Thus the largest expense (room and board) cannot be used by any of my college planning unless I am totally misreading the IRS publications / other tax websites.
Anybody else already been down this confusing road??