Something positive to consider about tuition

[Ostracized]

I'm entering third year of dental school, and something I've only recently learned is that tuition tax credits carry forward until after you finish school. In other words, if you paid $120,000 for tuition, you will get $120,000 in tax-free income -even after you graduate. I'm not sure what the income tax is on that much money, but it must be at least $50,000.

 

So, in an indirect way, school is actually much cheaper than it appears to be. I really don't know a lot about taxes, so if I am getting this totally wrong, someone please correct me.

[rollester]

I'm entering third year of dental school, and something I've only recently learned is that tuition tax credits carry forward until after you finish school. In other words, if you paid $120,000 for tuition, you will get $120,000 in tax-free income -even after you graduate. I'm not sure what the income tax is on that much money, but it must be at least $50,000.

 

So, in an indirect way, school is actually much cheaper than it appears to be. I really don't know a lot about taxes, so if I am getting this totally wrong, someone please correct me.

 

That is definitely something positive. Though we should keep in mind that we still need to pay interest on that amount we borrowed for tuition.

[Acci-dental]

That is definitely something positive. Though we should keep in mind that we still need to pay interest on that amount we borrowed for tuition.

 

The interest that you pay on student loans is actually tax deductible and can also be carried forward. However, on a line of credit the interest isn't.