In these uncertain times there are so many changes and adjustments to financial situations—thus tax impacts. For today, I want to look a bit deeper into refunds received by college students who paid tuition from a 529 savings plan.
The 2020 Q2 estimated tax payment date for businesses and individuals is extended from June 15th to July 15th under IRS Notice 2020-23. The relief applies to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020 and before July 15, 2020, including individuals, trusts, estates, corporations and other noncorporate filers.
School starts soon for many students at universities and colleges around the region. Many of those students receive scholarships to help pay for school. While most scholarships are excluded from gross income, students need to be aware of situations where scholarships need to be reported as income and that income could be subject to federal income tax with a maximum tax rate of 37%.