QHEE

(redirected from Qualified Higher Education Expense)
Also found in: Financial.
AcronymDefinition
QHEEQualified Higher Education Expense
References in periodicals archive ?
* Qualified higher education expenses are defined differently from qualifying expenses for education savings bonds.
Qualified education expenses include both "qualified higher education expenses" and "qualified elementary and secondary education expenses." (3z) Qualified higher education expenses include tuition, fees, costs for books, supplies, and equipment required for the enrollment or attendance of the student at any "eligible educational institution," and amounts contributed to a qualified tuition program.
Under the education investment plan, a contributor deposits amounts in a separate investment account established for the purpose of meeting the qualified higher education expenses of the designated beneficiary.
Qualified higher education expenses are tuition and fees required for enrollment or attendance at an eligible educational institution or certain vocational education schools.
Section 529 imposes no dollar limit on contributions; it merely requires that a QSTP have adequate safeguards to prevent contributions that exceed what is necessary to provide for the beneficiary's qualified higher education expenses. The proposed regulations provide a safe harbor that limits QSTP contributions to an amount determined by actuarial estimates to cover all tuition, required fees and expenses and room and board for the designated beneficiary for five years of undergraduate enrollment at the highest-cost institution the program allows.
If assets in the 529 plan are used for expenses that are not qualified higher education expenses, Susie generally must include the amount used to pay those expenses in her gross income, and a 10% penalty is assessed on that amount.
529 Plans can be used to help pay the costs of qualified higher education expenses at colleges nationwide.
Qualified higher education expenses include tuition, fees, books, supplies, and equipment.
"Qualified education expenses" include both "qualified higher education expenses" and "qualified elementary and secondary education expenses." (5) "Qualified higher education expenses" include tuition, fees, costs for books, supplies, and equipment required for the enrollment or attendance of the student at any "eligible educational institution," and amounts contributed to a qualified tuition program.
Withdrawals from an IRA for qualified higher education expenses of the taxpayer are not subject to the 10-percentpenalty tax for premature distributions (but are subject to regular income taxes).
Exceptions to the penalty tax include distributions: (1) made on or after death; (2) attributable to disability; (3) that are part of a series of substantially equal periodic payments made (at least annually) for the life or life expectancy of the individual or the joint lives or joint life expectancy of the individual and a designated beneficiary (e.g., an annuity payout); (4) for medical expenses in excess of 7.5% of adjusted gross income; (5) for health insurance premiums for those receiving unemployment compensation; (6) to pay for a first home; or (7) to pay for qualified higher education expenses. Distributions from a plan must usually begin by April 1 of the year after the year in which the individual reaches age 70 1/2.
The Lifetime Learning Credit is worth up to $2,000 per taxpayer for qualified higher education expenses such as tuition or books.
Full browser ?