Private foundations now have more time to make payments of estimated taxes. Certain penalty taxes imposed on officers, directors, trustees, and key employees must be disclosed on Form 990. Education Individual Retirement Accounts Individuals can establish an education IRA on behalf of a designated beneficiary to pay qualified higher education expenses.
Excess contributions are subject to the excise tax imposed on IRAs, equal to six percent.
If the distributions exceed the qualified educational expenses of the beneficiary during a tax year, the excess is subject to income tax as well as a 10 percent penalty tax. The trustee will be subject to information reporting requirements for contributions and distributions. The IRS must issue regulations to address content, due dates, and penalties. The TRA allows individuals an income tax deduction for interest paid on qualified education loans as long as the individuals are not claimed as dependents on another person's return. The deduction is allowed for interest paid on a loan incurred to pay tuition, room and board, and related expenses incurred by the individual, spouse, or dependent.