Tags: Ted Cruz | Trump Tax Reform | ted cruz | tax bill | 529 | private | homeschool

Cruz Amendment in Tax Bill Allows 529 Benefits for K-12

Cruz Amendment in Tax Bill Allows 529 Benefits for K-12
Sen. Ted Cruz, R-Texas (Alex Wong/Getty Images)

Sunday, 17 December 2017 11:52 AM

A tax break for parents who send their children to private school in the GOP overhaul of the tax code is “smart policy” that’ll be a “big win” for families, according to Forbes.

Congressional Republicans unveiled the final draft of the bill Friday night and it could be voted on this week, on track for President Donald Trump’s prediction of a tax cut measure before Christmas.

Included in the final draft is an amendment offered by Sen. Ted Cruz, R-Texas, to expand 529 education savings accounts — traditionally used for college tuition and expenses — for tuition for students in K-12 private and parochial schools, and costs related to homeschooling a child, the Washington Examiner reported.

Up to $10,000 per year per child can be distributed for these purposes.

“Senator Ted Cruz deserves a lot of credit for taking this on,” Forbes write Ryan Ellis wrote. “Thanks to him, it will become a lot easier for parents and their kids to have more options when it comes to education.”

Ellis pointed out the plans can be thought of as the rough equivalent of Roth IRAs for education— money goes in after tax, but then grows tax free. Distributions are tax exempt if used for qualified education expenses; the accounts are mostly run by state agencies, he noted.

“Parents can start saving right away for private or parochial school, or for homeschooling expenses, in a 529 plan when a child is born,” Ellis write.

“That money can grow tax-free for years to pay for things like Montessori school, Catholic high school, or home schooling networks. With a tax deductible component in most states, parents will get an immediate tax benefit, and then further tax relief in the form of tax-free growth.”

Forbes figured in the case of a Virginia family who saves $4,000 a year in a 529 for a child’s education would save one-quarter of a youngster’s Catholic school tuition.

“The best sign this is smart policy is that the Left is going completely apoplectic,” Ellis wrote. “They hate the idea that parents can free themselves from the big teachers' unions…”

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A tax break for parents who send their children to private school in the GOP overhaul of the tax code is "smart policy" that'll be a "big win" for families, according to Forbes.Congressional Republicans unveiled the final draft of the bill Friday night and it could be voted...
ted cruz, tax bill, 529, private, homeschool
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2017-52-17
Sunday, 17 December 2017 11:52 AM
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