Tax Benefit Brochure

How the Medical Expense Deduction and Tax Credits Options Impact Beacon Families Let’s take a look at how these tax deductions and tax credits can benefit your family. Although these examples are based on actual tax returns, your situation may be very different. For example, there may be additional implications for state income taxes, depending upon the laws of your state. You should always seek the advice of a professional tax advisor for the most accurate and up-to-date information. These examples assume no state income tax.

Note: The following examples do not incorporate loan or scholarship information for siblings enrolled in a college or university other than Beacon College.

THE PEREZ FAMILY Reyes is a single parent whose son Dani is a Beacon student. Dani’s educational expenses are $64,072 and he receives $10,000 in scholarship assistance.

THE DEVLIN FAMILY Dan and Peggy Devlin are the parents of Kelly. They operate a small family business. Kelly’s education expenses are $64,072 and her scholarship assistance is $8,000.

Without Medical

With Medical

Without Medical

With Medical

Deduction

Deduction (Estimated)

Deduction

Deduction (Estimated)

Adjusted Gross Income

$ 81,039 $ 19,400 $ 61,639 $ 7,675 $ 2,740* $ 4,935 $ 10,535 $ 5,600+

$ 81,039 $ 45,011 $ 36,028 $ 4,030 $ 2,740* $ 1,290 $ 10,535 $ 9,245+

Adjusted Gross Income Itemized Deduction

$ 112,761 $ 25,900 $ 86,861 $ 10,347 $ 3,000* $ 7,347 $ 13,535 $ 6,188+

$ 122,761 $ 44,926 $ 67,835 $ 7,728 $ 3,000* $ 4,728 $ 13,535 $ 8,807+

Standard or Itemized Deduction

Taxable Income

Taxable Income

Tax

Tax

Credits

Credits

Total Tax

Total Tax

Fed Tax Withheld

Fed Tax Withheld

Tax Owed ($) or Refunded (+)

Tax Owed ($) or Refunded (+)

(Net difference +$3,645)

(Net difference +$2,619)

THE JONES FAMILY James and Roberta Jones have two children in college. Denise attends a state university with educational expenses of $10,000 and Theo is a Beacon student. Theo’s educational expenses are $64,072 and his scholarship assistance is $5,000.

THE LIN FAMILY Paul and Laurel Lin are the parents of Gregory and Sarah, both enrolled in college. As a Beacon student, Gregory’s educational expenses total $64,072. He receives $3,000 in scholarship assistance. Sarah attends a private college close to home.

Without Medical

With Medical

Without Medical

With Medical

Deduction

Deduction (Estimated)

Deduction

Deduction (Estimated)

Adjusted Gross Income Itemized Deduction

$ 144,798 $ 25,900 $ 118,898 $ 17,392 $ 6,000* $ 11,392 $ 13,943 $ 2,551+

$ 144,798 $ 45,789 $ 99,009 $ 13,020 $ 6,000* $ 7,020 $ 13,943 $ 6,923+

Adjusted Gross Income Itemized Deduction

$ 270,877 $ 25,900 $ 244,977 $ 46,465 $ 45,465 $ 43,388 $ 2,077+

$ 270,877 $ 42,750 $ 228,127 $ 42,421 $ 41,421 $ 43,388 $ 1,967+

Taxable Income

Taxable Income

Tax

Tax

Credits

Credits

$ 1,000 (Income too high) $ 1,000 (Income too high)

Total Tax

Total Tax

Fed Tax Withheld

Fed Tax Withheld

Tax Owed ($) or Refunded (+)

Tax Owed ($) or Refunded

(Net difference +$4,372)

(Net difference +$4,044)

* Indicates the American Opportunity Tax Credit is included.

NOTE

In every single instance, taxes would be saved, even for high-income families. These savings can be applied to your student’s tuition and expenses at Beacon to lower the overall costs.