Let's discuss Qualified Education Expenses

So what exactly is qualified education expenses? Let's look at the IRS definition which says "qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution." http://www.irs.gov/publications/p970/ch02.html#en_US_publink1000204337
Now for those of you who own ESAs (Education savings Accounts also formerly known as Coverdell IRAs) there is slightly more flexibility with what items are considered qualified. For example you can withdraw funds for uniforms, computer technology and equipment and even software that is strictly educational only, tuition and fees, books and supplies for children in Kindergarten through college. With 529 college savings plans uniforms are not on the list and the computer equipment? Yes, recently added per the IRS "  Qualified tuition program (529 plan). For 2009 and 2010, qualified education expenses include expenses paid or incurred for the purchase of computer technology, equipment, and Internet access to be used by the beneficiary and his or her family while enrolled at an eligible educational institution. For more information, see Qualified education expenses in chapter 9."  So we know tuition is a go obviously...but the certain related is definitely the gray area. Always think required for attending the school. Keep those lists from the school (if any) showing items your kids will need, the syllabus from the high school or college professors showing the books and supplies needed to successfully complete the course. Keep all receipts. I repeat, KEEP ALL RECEIPTS. This is the CYA portion folks. In case there are any questions or concerns you will have your back up.

Lose weight not money

It's getting warmer and the weather is beginning to make it a great time to utilize the outdoors by including nature into your exercise regimen. There are a combination of things you can do to shed the pounds and stash the extra cash you would normally spend on a fitness facility, away in that rainy day account or childrens fund. Some of the items you will need to have when creating your own fitness environment are the following:

A jump rope
2  pound dumbbells
5 and 10 pound dumbbells (or large bleach container filled up with water)
A balance ball
A yoga mat
A resistance band
A weight ball
A hula hoop

You can purchase these things over time. Find out if you can use the outdoor track at your local high school. Visit the parks in your neighborhood and look out for hiking trails. Check your your cable programming and see if they have exercise programs (on Demand). There's FitTv if you have digital cable. The library has great fitness DVDs. Scour stores like Ross and TJMaxx for fitness dvds too. When combining your own workout routine at home with outdoor activities like hiking or power walking on the walking trail at the park you cannot go wrong.

Save Money on Entertaining The Kids

Birthdays and Other Special Occasions, who has the extra money these days lying around to cover all the  miscellaneous expenses? Well fear not KTULTV  has dished the juicy juicy on ways to throw fabulous birthday parties and entertain the kids without breaking the bank. Watch and take notes.

What is the 1099Q all about?

The 1099 reports income besides wages, salaries and tips. The 1099Q reports distributions from ESA (Education savings Accounts) also formerly known as Coverdell IRAs and 529 plans. You also will see information regarding  a trustee to trustee transfer if you rolled over assets from one 529 college savings plan into another. If you made a qualified withdrawal from your 529 or ESA then generally you don’t report the distributions on the 1040 tax return as income, but if you made a withdrawal for reasons other than qualified higher education expenses than that is another issue altogether.  Consult your tax advisor and also check out the following links for additional helpful tips and information.

http://www.irs.gov/pub/irs-pdf/p970.pdf

http://www.savingforcollege.com/articles/record-keeping-for-your-529