529 Payments & Medical Deductions
529 Plan Assets Toward Tuition Payment
On December 22, 2017, the president signed new tax legislation into law that includes the following new provision, related specifically to 529 plan accounts, beginning with the 2018 tax year:
"Account owners can use assets to pay for qualified K-12 expenses up to $10,000 per year, per student."
Account owners can treat K-12 withdrawals as qualified expenses with respect to the federal tax benefit, which became effective January 1, 2018.
The Pennsylvania Department of Revenue has also conformed to the IRS tax code for K-12 schools, but account owners should contact the Commonwealth directly at www.revenue.pa.gov or by calling 717-787-8201 for clarifications.
The AIM Business Office will accept a check from your 529 Plan toward tuition with a signed letter stating that the source of the funds was from your 529 Plan. In the event that the tax authorities subsequently require confirmation from AIM for the payment made by you, we will submit copies of the relevant documentation that was provided to us by you including copies of your checks sent to us for payment of tuition.
Please note, 529 payments can only be applied to current fiscal year tuition. AIM's fiscal year begins on July 1 and ends on June 30, so 529 payments for 2020-2021 school year cannot be processed until after July 1, 2020.
However, we strongly encourage you to consult a qualified tax advisor about this matter, prior to making payments from your 529 Plan. They will be able to advise you appropriately on the procedures involved.
Tax-Deductible Medical Expenses
In most cases, tuition at AIM Academy is tax deductible as a federal itemized deduction under Special Education medical expenses. For further information consult a qualified tax advisor.
We're pleased that Finalsite, our school web communication platform, highlighted AIM and CFO Sid Ghosh in their recent blog about the new tax law allowing individuals to use 529 assets toward tuition.
- Dyslexia, neurobiological in origin, refers to a cluster of symptoms that affects specific language skills, particularly reading.
- Dyslexia is neither due to a lack of intelligence nor a desire to learn.
- 15-20% of the population as a whole exhibit some symptoms of dyslexia, including slow or inaccurate reading, poor spelling, poor writing, mixing up similar words, difficulty learning a foreign language, and/or trouble memorizing number facts and performing mathematical operations.
- Some dyslexics manage to master early reading and spelling skills, but later experience their most debilitating problems when more complex language skills are required such as grammar, understanding textbook materials and writing essays.
- Early at risk signs may include several of the following:
- speaks later than most
- pronunciation problems
- slow vocabulary growth
- word retrieval difficulty
- unable to rhyme words
- trouble learning numbers, alphabet, days of the week, colors and shapes
- poor letter-sound correspondence
- inability to recognize common sight words
- After 4th grade, it takes 4 times as long to remediate reading difficulties
- 70% of 3rd graders who read below grade level never catch up
Parent Resource Books:
- Hall, Susan.L. & Moats, Louisa C. (1999). Straight Talk About Reading: How Parents Can Make a Difference in the Early Years. Contemporary Books, Chicago, IL.
- Moats, Louisa C. & Dakin, Karen. (2008). Basic facts about Dyslexia and other Reading Problems. Baltimore, MD: International Dyslexia Association.
- Tridas, Eric Q., ABC to ADHD. What Every Parent Should Know About Dyslexia. Baltimore, MD: International Dyslexia Association.
- Berch, Daniel B. & Mazzocco, Michelle M.M (2007). Why Is Math So Hard for Some Children? The Nature and Origins of Mathematical Learning Difficulties and Disabilities. Paul Brookes Publishing Co., Baltimore, MD.
- Dawson, Peg & Guare, Richard (2009). Smart but Scattered: The Revolutionary "Executive Skills" Approach to Helping Kids Reach Their Potential. The Guildford Press, NY, NY
- Shaywitz, Sally (2003). Overcoming Dyslexia, A New and Complete Science-Based Program for Reading Problems at Any Level, Alfred A. Knopf, New York, NY.
Books to Read to your Children regarding learning differences:
- Elementary: Winkler, Henry, The Hank Zipzer Series- 14 book series based on the life of Henry Winkler
- Pollaco, Patricia. (1998) Thank you, Mr. Falker. Penguin Putnam Books for Young Readers, NY, NY
- Gantos, Jack.(1998) Joey Pigza Swallowed the Key. Harper Collins Children's Books, NY, NY
- Robb, Diane Burton.(2004) The Alphabet Story: A Story About Dyslexia. Albert Whitman Company, Morton Grove, IL
- Malchow, Hal and Malchow, Alex(2011) The Sword of Darrow. BenBella Books, Inc. Dallas, TX
- Nadeau, Kathleen and Dixon, Ellen (2005). Learning to Slow Down and Pay Attention: A book for kids about ADHD. Magination Press, Washington DC, American Psychological Association
- Zaslavsky, Claudia (2001) Number Sense and Nonsense: Building math creativity and confidence through number play. Chicago Review Press, Chicago, Il.
- Fischer, Gary & Cummings Rhoda Woods (1990) The School Survival Guide for Kids with LD
- Frostig Center (with Foreword by Rick Lavoie) (2009) The Six Success Factors for Children with Learning Disabilities. John Wiley & Sons, San Francisco, CA