Sentence examples for qualified expense from inspiring English sources

Because long-term care insurance is considered a qualified expense under these plans, all premiums paid for a tax-qualified policy become deductible within certain limits, as long as the account holder is age 65 or above.

Itemized deduction A qualified expense that the IRS allows you to subtract from your adjusted gross income, which further reduces your taxable income.

The IRS penalizes Traditional IRA withdrawals before 59.5 unless it's for first-time home buying, qualified medical expenses or qualified higher education expenses.

All gains come out free of taxes, as long as you use them for qualified educational expenses.

While you deposit after-tax money in the accounts, you do not pay any taxes on the earnings as long as you use them for qualified educational expenses.

CASH YOUR BONDS If you have Series I or EE bonds (issued after 1989) and redeem them in the same year in which you have qualified education expenses, you do not have to pay taxes on the interest income that you collect at redemption.

For example, if a child has $4,000 in qualified educational expenses attending a state university and gets $4,000 in Pell grant money, he has no remaining qualified educational expenses left to claim a tax credit against.

Let's say you averaged $50,000 in qualified R&D expenses over the past three years.

For nonqualified distributions, amounts are penalty-free if used to pay for qualified educational expenses, and only amounts attributable to earnings are subject to income tax.

(To learn more, read "Tax Treatment Of Roth IRA Distributions" and "Taking Penalty-Free Withdrawals From Your IRA").. Tax-Favored Education-Savings Alternatives: Plans like the 529 offer tax-deferred growth and tax-free distribution for qualified educational expenses.

For Traditional IRAs, amounts can be withdrawn penalty-free if the distribution is used to pay for qualified educational expenses; however, any taxable portion of the withdrawal will be treated as ordinary income for the year the withdrawal occurs.