Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

A Coverdell Education Savings Account (ESA) allows individuals to establish a savings account meant to pay for the qualifying educational expenses of a beneficiary. The amounts deposited in the account grow tax-free until distributed. The applicable educational expenses can be either for primary, secondary, or higher education, however, individuals cannot contribute to both a Qualified Tuition Program (QTP) and a Coverdell ESA in the same year for the same beneficiary.

Qualifications: The ESA must be opened for a beneficiary under the age of 18

Limit on modified adjusted gross income (MAGI): Contributors to the account must have a MAGI of less than $110,000; $220,000 for married, filing jointly

Limit on the contributions to the account: Annual contributions to the account cannot be more than $2,000

 *Information from the IRS Publication 970, “Tax Benefits for Education.” More information can be found in the Publication.