Welcome to "Curt's Chalk Talk." The late game college funding series. I'm Curt Sheldon with C.L. Sheldon & Company, and today I'd like to talk to you about the GI Bill.
Now, the good thing about the GI Bill is they'll pay for pretty much 100% qualified tuition and bills. That's a good thing, but what we need to be concerned about is what happens if there are scholarships. And it has to do with your taxes.
Scholarships are tax free, if they're used for qualified tuition and fees. But if GI Bill already pays for full qualified tuition and fees for in state college, and your child gets a scholarship, that scholarship becomes taxable income. Now whether your child will actually have to pay taxes on, it depends on how big the scholarship is and how good the summer job is, but you'll want to think about this.
And if you have more than one child, you want to be very careful about how you split it up. Just don't go 50-50 if you have two kids, because you'll love them both the same. If one of them like Junior is not going to get any scholarships, then you might want to put 100 percent on the GI Bill towards him because his sister's pretty smart and she's going to get some scholarships. In any event you're going to want to think it through and make sure you don't turn tax free income into taxable income.
If you'd like to get a checklist of financial things you should consider as you're making the transition from active duty to the civilian life, go to www.clsheldon.com/college. That's www.clsheldon.com/college and download a free checklist.
Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.
